Name: AIC's Nick Britton flags wide investment trusts discounts and inflation-beating strategies
Uploaded: 2022-09-01T12:19:20.289178+00:00
Duration: 605 s
Channel: Adrian Hargrave

Adrian Hargrave

Nick Britton from the Association of Investment Companies chatted to Proactive London about mooted ideas to beat inflation and the wide discounts to net asset values currently available.

With discount current at around 10%, wider than they've been for quite a while, Britton notes that "generally speaking when you've bought investment trusts at a double-digit discount in the past you've proceeded to do very well".

He also unpacks hot topics including possible investments in renewables, a new addition to the FTSE 100 and the importance of portfolio diversification.

Nick Britton from the Association of Investment Companies chatted to Proactive London about mooted ideas to beat inflation and the wide discounts to net asset values currently available.With discount current at around 10%, wider than they've been for quite a while, Britton notes that "generally speaking when you've bought investment trusts at a double-digit discount in the past you've proceeded to do very well".He also unpacks hot topics including possible investments in renewables, a new addition to the FTSE 100 and the importance of portfolio diversification.

Using Capital Preservation Investment Trusts to beat inflation

The UK market is better protected for inflation

Alternative assets linked to inflation

What will inflation do and how should investors act

FTSE re-balancing and F&C - the oldest investment trust

Why buying investment trusts at a discount works well

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/004/568/004568/video_kXwRF75.mp4

Nick Britton stresses that whilst the stockmarket always carries risks, with investment trusts there are 3 ways to help yourself: Capital Preservation Investment Trusts such as Capital Gearing, Ruffer and Personal Assets. These have built inflation protection for a while.

Nick Britton notes the UK market has held up better than other markets due to its higher concentration of commodities, oil and banks, giving it a more safe haven status

Nick Britton notes that investing in alternative assets that have inflation contractually built in, such as property and infrastructure, are good places to beat inflation

Nobody really knows where inflation will go, it could surprise to the downside, as well as remain high. The most important thing is to diversify, some of the assets that have fallen the most could bounce back most as well

It is possible that F&C, the world's oldest investment trust might be back in the FTSE 100. There could be as many as four investment trusts, which would be a record

Nick Britton is not calling the bottom of the market, but notes that buying investment trusts at double digit discounts has historically led to good returns