Widening discounts or a relief rally: How the EU referendum could impact trusts

Despite a recovery from the market turmoil seen in the first six weeks of the year, investor sentiment still remains weak, writes Winterflood's Simon Elliott.

The possibility of a Brexit following the referendum in just over a month's time has resulted in further uncertainty. In the investment trust sector this can be best seen in the pattern of discount movements. The sector average discount has widened this year reflecting, in our opinion, weakening demand from retail investors. Carney: Brexit could lead to technical UK recession Data from the Investment Association shows there were also net retail outflows from open-ended equity funds for the first three months of the year. However, the travails of the investment trust sector cannot b...