Originally published at: http://whichinvestmenttrust.com/woodfords-patient-capital-promoted-to-the-ftse-250-as-others-are-demoted/
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FTSE 100 Index
No change affecting investment trusts
Woodford Patient Capital Trust;
BlackRock World Mining / Personal Assets Trust / Law Debenture
FTSE Small Cap
BlackRock World Mining / Personal Assets Trust / Law Debenture / Empiric Student Property / VPC Specialty Lending / Sequoia Economic Infrastructure Fund / Ranger Direct Lending / Strategic Equity Capital
Acencia Debt Strategies / Candover / City Natural Resources High Yield / Dunedin Enterprise
The move will increase demand for the shares as tracker funds are obliged to acquire them.
FTSE who manage the London Stock Exchange indexes, have announced their quarterly reshuffle which effects investors because it increases or decreases demand for the shares for the companies involved. For those demoted it can lead to widening discounts as tracker funds sell the shares, whilst leading to a boost in demand for those promoted.
The promoted include Woodford Patient Capital, who two months after listing is to join the FTSE 250 index, which is the 250 biggest listed companies outwith the FTSE 100. Investment trusts are of course listed companies in their own right, just like Tesco and RBS, though their business is mainly concerned with investing shareholder funds, though some own operating businesses too, including Alliance Trust who own a platform and asset management businesses, and Law Debenture trust, which owns a fiduciary business and was demoted from the FTSE 250 to the FTSE Small Cap index. The rebalance will be effective close of 19/06/2015.
BlackRock World Mining and Personal Assets Trust were also kicked out of the FTSE 250 to join Law Debenture in the FTSE Small Cap index.
FTSE Small Cap, which is a constituent of the FTSE All Share index, which as the name implies covers all London Stock Exchange listed businesses though not those on AIM, mow has BlackRock World Mining, Personal Assets Trust and Law Debenture as members. This may widen the discounts/premiums on these stocks in coming days.
New members include the recently listed Ranger Direct Lending fund which already trades on a premium as investors flocked to its market beating promised dividend payout.