UK Small and Mid-cap Investment Trusts Fall Up to 20%

Closed-end funds invested in small and mid-cap stocks have dropped in price since the Brexit vote was revealed last week, creating an opportunity for the brave contrarian investor

David Holder 30 June, 2016 | 10:13AM

Closed-end funds invested in small and mid-cap stocks have dropped in price since the Brexit vote was revealed last week, creating an opportunity for the brave contrarian investor.

It is little surprise to see those stocks deemed to have substantial UK exposure suffer subsequent to the recent EU referendum result. Whilst the UK may avoid outright recession, the current modest rate of growth will at the very least be paired back, as investment decisions continue are deferred and the consumer potentially retrenches.

Since June 23 mid and small cap closed-end funds, seen as most exposed directly to the domestic UK economy, have fared worse than their larger cap brethren which derive substantially more of their earnings internationally.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
JPMorgan Mid Cap Ord1,353.90 GBX0.29
Schroder UK Mid Cap Ord626.75 GBX0.76
Standard Life UK Smaller Co. Ord616.70 GBX0.77

About Author

David Holder  is a senior investment research analyst at Morningstar

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