Emerging market investment trusts are still trading on discounts as wide as 19%, despite the broader rally for the region continuing to gain momentum.
According to analysts at Stifel, EM-focused investment companies have historically traded on average discounts of 6% to 8% but this figure is now around the 11% mark, with Fundsmith Emerging Equities the only trust currently trading on a premium. This level appears surprising as the wider emerging markets sector has rallied strongly this year, with the MSCI Emerging Markets index up 41% year-to-date. Ashmore AUM increases 4% as emerging markets recover Pascal Dowling, publisher of Kepler Partners' Investment Trust Intelligence, believes current discount levels show there is still a...
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