Buffettology pulls investment trust IPO


The Buffett name and the excellent performance record of Sanford DeLand simply hasn’t put enough bums on seats to get its UK smaller companies launch off the ground. Sentiment towards the UK market is at a low ebb and a resurgence of virus cases has further undermined confidence.

Smaller companies tend to beat their big blue chip rivals over the long term, but it’s understandable investors see them as being at the sharp end of any impending economic trauma. The Buffettology focus on quality companies should have provided some downside protection on that front, but that’s academic now.

Disappointed investors who want exposure to this area could consider the Standard Life UK Smaller Companies trust, which is trading on an 8% discount, or indeed they could invest in the existing Sanford De Land UK Buffettology fund which has a healthy slug of small caps in its portfolio.

With Tellworth and Buffettology IPOs now scuppered, it’s two down and one to go. We’re still awaiting a prospectus from the Schroder British Opportunities trust which has also announced its intention to float. Schroders has the benefit of a bigger distribution network than the boutique operators Tellworth and Sanford DeLand, but it looks like it’s facing an uphill battle to pull money in, and the failure of a second IPO will no doubt give Schroders pause for thought.

These articles are for information purposes only and are not a personal recommendation or advice.

ajbell_laith_khalaf's picture
Written by:
Laith Khalaf

Laith Khalaf is Finanial Analyst at AJ Bell. He began his financial services career in 2001 at Hargreaves Lansdown, where he worked a variety of roles across pensions and investments, covering both DIY and advised business. Laith began to focus on research and investments in 2007, becoming a leading industry commentator. He’s provided daily business bulletins on LBC, is a regular contributor to the financial pages of the national press, and a frequent guest on TV and radio. He has a degree in Philosophy from Cambridge University.

Related content

The UK funds and trusts which have soared after the general election


Sentiment towards UK stocks has dramatically improved since the December general election vote result, as evidenced by widespread gains among UK-focused funds and investment trusts....

Thu, 09/01/2020 - 00:00

The importance of investment style when picking funds


When it comes to choosing an investment fund there are a number of things to take into account: fees, track record and the assets and...

Thu, 17/01/2019 - 00:00

The ultimate income investment trusts


Income-seeking investors should consider investment trusts to boost their income and capital returns, as new research shows an elite group of trusts yield up to...

Thu, 16/08/2018 - 00:00

Investment trusts for every stage of life


Good financial planning can make a big difference between a happy life and one that is more stressful due to worries about money. We all...

Thu, 26/10/2017 - 01:00

Bargain trusts on the hunt for ‘ten-baggers’


Investment trust shares can trade either at a discount or a premium to their underlying assets or net asset value (NAV), depending on factors such...

Thu, 19/10/2017 - 01:00