Demand for alternative assets has soared in recent years, as investors have sought yield and low NAV volatility outside the bond market in a low interest rate world. The investment trust sector has been a major beneficiary, with many closed-ended funds offering these characteristics through their ability to invest in illiquid assets. Historically, alternative assets have offered the potential for higher returns by (in technical terms) harvesting the illiquidity premium. In more natural language ....

18 May 2021
The complexity premium
Hipgnosis Songs Fund Limited Shs GBP (SONG:LON), 70.2 | ICG Enterprise Trust PLC GBP (ICGT:LON), 1,232 | Pollen Street PLC (POLN:LON), 569 | Oakley Capital Investments Ltd Registered (OCI:LON), 459 | M&G Credit Income Investment Trust Plc (MGCI:LON), 92.7 | NB Private Equity Partners Limited Class A (NBPU:LON), 2,130 | NB Global Monthly Income Fund Limited Red GBP (NBMI:LON), 69.0 | MIGO Opportunities Trust PLC GBP (MIGO:LON), 324 | AVI Global Trust PLC GBP (AGT:LON), 204

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The complexity premium
Hipgnosis Songs Fund Limited Shs GBP (SONG:LON), 70.2 | ICG Enterprise Trust PLC GBP (ICGT:LON), 1,232 | Pollen Street PLC (POLN:LON), 569 | Oakley Capital Investments Ltd Registered (OCI:LON), 459 | M&G Credit Income Investment Trust Plc (MGCI:LON), 92.7 | NB Private Equity Partners Limited Class A (NBPU:LON), 2,130 | NB Global Monthly Income Fund Limited Red GBP (NBMI:LON), 69.0 | MIGO Opportunities Trust PLC GBP (MIGO:LON), 324 | AVI Global Trust PLC GBP (AGT:LON), 204
- Published:
18 May 2021 -
Author:
Thomas McMahon, CFA -
Pages:
6 -
Demand for alternative assets has soared in recent years, as investors have sought yield and low NAV volatility outside the bond market in a low interest rate world. The investment trust sector has been a major beneficiary, with many closed-ended funds offering these characteristics through their ability to invest in illiquid assets. Historically, alternative assets have offered the potential for higher returns by (in technical terms) harvesting the illiquidity premium. In more natural language ....