Iimia has established an investment trust that adopts a similar investment strategy to its existing Oeic, the Iimia accelerated fund.
The Iimia investment trust will have a concentrated portfolio of around 25 investment trusts that invest globally. This is a smaller number of holdings than contained in the existing Oeic.
As well as sharing an investment strategy, the new trust and Oeic share the same fund manager. Nick Greenwood, Iimia's head of investment trusts, will manage both funds. He will be assisted by Daniel Lockyer.
Greenwood, who has over 20 years' investment experience, built up a track record with Christows where he was head of investment trusts between 1997 and 2002. Lockyer has over 10 years' experience and worked alongside Greenwood at Christows..
Greenwood and Lockyer will use a combination of top-down and bottom-up research to find price inefficiencies in the investment trust market. They believe the split-cap debacle has created these inefficiencies, with the value of many investment trusts falling in relation t the underlying investments.
Greenwood & Lockyer are contrarian investors so they will be looking for trusts with wide discounts that are likely to narrow in the future. This is a skill which requires a good understanding of the investment trust industry and a lot of time is needed for research - which many investors and IFAs may not have.
The multi-manager approach of the Iimia trust solves the problem as the research is carried out by experienced professionals. Although the trend is for low levels of gearing within the investment trust sector, a trust of investment trusts may remind some investors of how their fingers were burnt by the collapse of split-caps.
However, this trust may be of interest to experienced investors who want to consolidate their holdings within one fund that is run by a highly experienced manager.