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Greenwood to run iimia fund of investment trusts

Investment manager iimia is launching a fund of investment trusts aimed at generating absolute returns through investing in trusts listed in the UK but invested in businesses worldwide.

The accelerated fund will be run by Nick Greenwood, formerly head of investment trusts at Christows, who will invest in trusts he believes have been unjustly dragged down to undeserved levels of discount due to the splitcapital trust crisis.

It will be benchmarked to the FTSE investment companies index and invest in around 40 of the sector&#39s 400 trusts. Greenwood says he is confident of achieving absolute returns as the long period of excessive supply has been replaced by strong demand, prompted by an increase in the number of boards buying back and cancelling shares. He says this presents excellent opportunities.

Charges will be up to 5 per cent initial and 1.75 per cent or 1.25 per cent annual depending on the size of the investment. Commission is 3 per cent, with 0.5 per cent trail.

Greenwood says: “There have been huge price inefficiencies across the sector, which will in time yield significant gains. That provides us exciting opportunities.”

Chartwell Investment Management director Patrick Connolly says: “It is a very sensible idea. It could be difficult to get people to invest in the fund but discounts are much larger than you would think and Greenwood has a very good track record.”

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