The past year saw discounts on UK trusts failing to move in tandem with the FTSE All Share. Alex Paget, research analyst at Kepler Partners - whose work features in Investment Trust Intelligence - looks at why this happened and what investors can expect from 2017.
It is clear that many aspects of 2016 have broken from tradition. Leicester City defied their 5,000-1 odds to win the Premier League, the UK rebelled against the so-called 'elite' by voting to leave the EU and now the 'Free World' is led by a real estate mogul/reality TV star with no prior political experience. With all this going on, it is understandable many investors may have missed an almost unprecedented event in the sleepy world of UK investment trusts. Over the long term, discounts on UK trusts have moved in tandem with the performance of the FTSE All Share. This makes sense, ...
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