Pressure on small ITs to consolidate

Winterflood research claims liquidity issues are making smaller investment trusts less attractive to investors

Small investment trusts are at a disadvantage to their larger counterparts and will face increasing pressure to consolidate, according to Winterflood. Winterflood’s research shows investment trusts have seen significant growth over the past 12 months in market-cap terms. At the end of April, 155 investment companies had a market capitalisation of greater than £100m compared with 118 the previous year. Meanwhile, 131 investment companies had a market cap of less than £100m, from 175 a year earlier. However, the broker says there are still a number of funds which could be consider...