L&G Cyber Security ETF

The L&G Cyber Security ETF (LSE:ISPY) does what it says on the label. It provides exposure to a swathe of tech companies whose primary role is to protect individuals and businesses against online threats.

In total, the fund holds shares in 35 different companies. These include pureplay security providers including Palo Alto, CrowdStrike and Rubrik, and more diversified tech specialists such as Cisco. It also has a significant holding in telecoms giant Broadcom.

This provides multiple ways for investors to capitalise on the surging digital economy, but with a focus on the fast-growing (and potentially more resilient) cyber security segment.

A Royal Institution of Chartered Surveyors (RICS) survey shows 27% of UK companies have experienced at least one cybersecurity incident in the last year. That’s up from 16% a year ago, data shared with the Guardian newspaper shows.

What’s more, almost three-quarters of the 8,000 business leaders surveyed believe an online attack will disrupt their business in the next 12-24 months. In this climate, I believe it’s fair to expect rapid growth in the cybersecurity market to remain broadly resilient even if economic conditions worsen.

Legal & General‘s fund has delivered an 11.3% average annual rate of return since 2020. I bought it for my own portfolio, even though the rise of artificial intelligence (AI) poses substantial challenges for the sector moving forwards.

BlackRock Smaller Companies Trust

The BlackRock Smaller Companies Trust (LSE:BRSC) invests in a far more diversified selection of companies. But with a focus on small-and mid-sized businesses, it also has significant growth potential by excluding more mature blue-chip shares.

In total, the investment trust holds 103 different companies spanning different sectors. Industrials, financials and consumer goods are all well represented (accounting for 27%, 24% and 20% of the portfolio respectively). Other industries covered include real estate, technology, healthcare and basic materials.

Some of the trust’s largest weightings are financial services provider XPS Pensions, raw earth materials supplier Breedon and book publisher Bloomsbury Publishing.

Another interesting feature of the trust is its focus on UK equities (99% of the complete portfolio). On the one hand, this means it carries greater geographic risk than continental or global funds. It’s only delivered an average annual return of 3.8% since 2020.

However, it may also lead to superior returns going forward if a recent rotation away from US equities and into European and UK ones continues. It’s also worth mentioning that the past five years were characterised by post-Brexit political turbulence and high interest rates in the UK. These headwinds may prove far less significant over the next half-decade, but they remain risks nonetheless.

Today, the BlackRock trust trades at a weighty 12.8% discount to its net asset value (NAV) per share. I think that makes it worth serious consideration from long-term value investors.

The post Here are 2 investment trusts and funds packed with top growth shares to consider! appeared first on The Motley Fool UK.

Here are a couple of top funds and trusts I think warrant close attention this month.

BlackRock Smaller Companies Trust

Investors seem to be shifting from US equities into UK shares in growing numbers, prompted by the turbulent political backdrop in Washington and concerns over elevated stock valuations.

But rather than only investing in the FTSE 100 or FTSE 250, one idea could be to grab exposure to British small-cap shares. Analysts at Hargreaves Lansdown note that smaller companies are enjoying “undemanding valuations, [meaning] there’s an opportunity for investors to add excellent long-term growth potential to their portfolios.”

Investing in smaller firms involves greater risk. These businesses don’t enjoy the market-leading positions and strong balance sheets of many larger companies, and they can be especially vulnerable during economic downturns. But the BlackRock Smaller Companies Trust (LSE:BRSC) helps investors to reduce such risks.

This pooled investment vehicle has holdings in 100 companies that span a variety of sectors. Among its largest holdings are infrastructure products manufacturer Hill and Smith, and telecoms services provider Gamma Communications.

Smaller companies can have better long-term growth potential than larger-caps, which can result in supersized performance. Indeed, Hargreaves Lansdown also notes that over the last five years, the FTSE Small Cap ex IT index has delivered a return of 78.33%, ahead of the 72.94% and 41.74% returns delivered by the FTSE 100 index and FTSE 250 ex IT index, respectively.

The excellent value offered by BlackRock Smaller Companies Trust suggests this may be an especially attractive way to consider gaining exposure too. The trust trades at a whopping 12.5% discount to its net asset value (NAV) per share.

iShares Physical Gold

Holding safe-haven gold in a portfolio offers insurance against economic and political shocks. I think now especially could be a good time to consider gaining exposure through an ETF like iShares Physical Gold (LSE:SGLN).

Gold’s hit repeated highs over the last few years, and in 2025 it’s risen around 18% so far. I’m backing it to continue rising as interest rates fall, trade tensions likely persist, the US dollar depreciates and geopolitical instability increases.

I think iShares Physical Gold could be an attractive fund to consider for especially risk-averse SIPP investors. It allows individuals to capitalise on gold price movements without having to buy gold stocks. Therefore, it provides protection from exploration and production problems that can be commonplace in the mining industry.

At the same time, ETFs like this are more convenient than buying and then holding physical gold. Indeed, this particular bullion-backed fund enjoys especially strong liquidity, making it easier and potentially more cost effective to buy and sell.

There’s no guarantee that gold prices will retain their upward momentum. Renewed market confidence could instead prompt a mass selling of the yellow metal as investors seek out riskier assets.

Yet on balance, I still believe gold ETFs like this one are worth serious consideration in the current climate.

The post 2 UK investment trusts and ETFs to consider in a SIPP this June! appeared first on The Motley Fool UK.

Neil Woodford

The Woodford Patient Capital Trust (LSE: WPCT) consistently ranks as one of the most popular investment trusts. It’s run by Neil Woodford, one of the UK’s best-known fund managers, and aims to invest in a mix of exciting, disruptive early-stage and early-growth companies, together with some of his high conviction mid- and large-cap ideas.

The fund specialises in investing young companies with strong intellectual property propositions, helping them fulfil their growth potential through the deployment of long-term patient capital.

It has in place an innovative fee structure that combines a very low annual management fee of 0.19% with a 15% performance fee on any excess NAV returns over a 10% cumulative hurdle rate per annum, which is subject to a high water mark. This structure aligns the interests of the fund manager with those of its shareholders and makes it a compelling fund pick for anyone looking to invest for the long haul.

Past performance

However, one major cause for concern for prospective investors is the fund’s dismal past performance. Since its inception in April 2015, it has delivered a total net asset value (NAV) loss of 16%, against the FTSE All-Share Index’s gain of 45% over the same period.

It’s still too early to tell whether its recent underperformance is a sign of things to come, given that the fund has had just over three years of operation — but certainly it has made a number of poor stock picks. Woodford suffered some high-profile losses from his biotech bets in Abaco Capital and Circassia, which more than offset gains from winning investments such as Purplebricks.

And following its recent underperformance, shares in the Woodford Patient Capital Trust currently trade at an 11% discount to its NAV.

Small-cap fund

An alternative trust for investors seeking exciting growth potential from innovative companies is the BlackRock Smaller Companies Trust (LSE: BRSC).

The fund’s recent performance is great, with it having delivered a total NAV return of 15% over the past year, against its benchmark performance of just 5%. This demonstrated the good stock selection made by its fund managers over the past year, with the fund benefiting from its exposure to pharmaceutical, biotechnology, financial and support service stocks.

The most significant contributors to its performance over the past year were Dechra Pharmaceuticals, Keywords Studios, Robert Walters, and Premier Asset Management.

Track record

Its longer-term track record is just as impressive, the fund having achieved very significant outperformance against its benchmark. In the 10 years to 28 February, the fund has delivered a total NAV return of 264%, against the benchmark’s gain of just 67%.

What’s more, BlackRock Smaller Companies Trust has a strong track record of growing its dividend, with 15 years of consecutive annual dividend increases under its belt.

Looking forward, however, I’m wary about the impact of uncertainty surrounding the UK economy, not least because of Brexit, given its heavy exposure to domestically-focused companies. And following recent strong interest in the fund, shares in it trade at a post-Brexit vote low discount to its NAV of just 8%.

The post Can the Woodford Patient Capital Trust help you to retire early? appeared first on The Motley Fool UK.

Smaller companies

One such fund is the BlackRock Smaller Companies Trust (LSE: BRSC), which currently trades at a 12% discount to its net asset value of 1,534p per share. UK smaller companies have fallen out of favour with investors for quite some time, with many investment trusts covering the sector trading at some of the widest discounts to their net asset values (NAV) in the industry.

But despite uncertainty surrounding the UK economy, not least because of Brexit, the performances of smaller company investment trusts have held up well in recent years. The BlackRock Smaller Companies Trust is a particularly strong performer, with a five-year NAV return of 140%, compared to its Numis Smaller Companies plus AIM (ex Investment Companies) return of just 68% over the same period.

Growth and income

The fund aims to achieve long-term capital growth for shareholders, but it also provides income to shareholders via its twice-yearly dividend, which currently gives shares in the trust a yield of 1.8%.

Fund manager Mike Prentis, who has been the lead manager of the investment trust since 2002, doesn’t think like your average stock picker. Prentis has a preference for the fastest growing, innovative companies and takes a long-term view on fundamentals. He also uses a highly diversified investment strategy, with no single holding accounting for more than 2.5% of the portfolio value.

Industrials dominate its portfolio, with a 33% sector weighting, and this is followed by financial services (15.8%) and consumer services (13.1%). Top holdings include Dechra Pharmaceuticals (2.1%), Avon Rubber (1.8%), 4imprint Group (1.7%), Robert Walters (1.6%) and Central Asia Metals (1.6%).

Asia

Another fund that’s worth a closer look is Symphony International Holdings (LSE: SIHL). The Asia-focused investment company offers exposure to the region’s rapidly expanding markets by investing in firms that are set to benefit from the rising disposable incomes of the region’s growing middle class.

Macroeconomic fundamentals are supportive and valuations are attractive, with Asian stocks expected to benefit from strong economic growth and structural reforms in various countries. Many analysts also reckon Asian equities are only still mid-cycle in their bull market, meaning there’s potential for outperformance against developed market equities this year.

What’s more, shares in the investment company are trading at a massive 26% discount to its NAV, giving investors the opportunity to pick up its shares for significantly less than the sum of its parts.

Unquoted companies

The company is invested in a number of high-growth sectors, which include healthcare, hospitality, lifestyle and real estate. And in addition to owning listed equity investments, 33% of the portfolio is invested in unquoted companies. This gives investors exposure to companies that are in the developing stage or have under-tapped potential.

It’s not an investment suited for everyone, but for investors looking for an undervalued play on Asia, Symphony International Holdings could be a great pick.

The post 2 cheap investment trusts I’d consider in February appeared first on The Motley Fool UK.

We do need another hero

Unlike Woodford, who said a very public sorry for his recent underperformance, BlackRock fund manager Mike Prentis has nothing to apologise for. While Woodford Patient Capital Trust is down 3% over the last year, his BlackRock Smaller Companies Trust (LSE: BRSC) fund is up a whopping 36%, which makes Prentis an unsung hero in my eyes. Some people just do not get the glory they deserve.

This success is no flash in the pan. Prentis has been running the trust since 2002, and over the last five years has returned an astonishing 165%, according to Trustnet.com. He is working in a buoyant sector right now but has still outstripped his UK smaller companies benchmark, which grew 133% over the period. Prentis is also co-manager of the BlackRock Throgmorton Trust, which has delivered almost identical performance figures.

Cut-price star

BlackRock Smaller Companies is 100% invested in the UK and top holdings include CVS Group, Dechra Pharmaceuticals, Advanced Medical Solutions and Bodycote, which may be familiar to regular Fool readers. Many of these are listed on the FTSE 250 so its portfolio is not directly comparable to Woodford’s unquoted forays.

The BlackRock fund was launched way back in 1906 and currently runs to £595m, so it is not too unwieldy. Its performance record speaks for itself, and Prentis even manages to yield 1.69% a year from its portfolio of smaller stocks.

BlackRock Smaller Companies somehow trades at a discount to net asset value of -12.75%, astonishingly wide given its performance. As I said, Prentis is an unsung investment hero, which is not a problem Neil Woodford is ever likely to have. When Woodford Patient Capital Trust was launched in April 2015, such was the demand that is instantly traded at a hefty premium, which peaked at 15%.

Woodford at a discount

Today, the trust trades on a discount of -5.56%. This means that as well as seeing little or no growth, early bird investors have also taken a serious hit on that front.

Despite this, Patient Capital Trust is still the second most traded investment trust in the UK. Maybe that is due to the amount of people selling, I don’t know. Currently, the fund manages £787m, which is small beer by Woodford’s standards. He has proposed raising the maximum amount he can invest in unquoted companies from 60% to 80% of the trust. Now, I remain a fan but would be wary of following him even deeper into unfamiliar territory, especially when there are other managers who have shown they understand the terrain.

Mike Prentis is one, Giles Hargreave at unit trust Marlborough UK Micro-Cap Growth is another, returning 30% over one year and 152% over five. Past performance isn’t everything, but in this case, it is the deciding factor for me.

The post Should you dump Woodford Patient Capital Trust plc and buy this fast-rising investment trust? appeared first on The Motley Fool UK.