How are European investment trusts holding up in face of political headwinds?

Election impact on European trusts

European investment trusts are not particularly cheap despite the legion of risks the sector faces, but more upsets at the ballot box this year could leave some of the world's largest and most profitable companies available to buy at a discount.

It is tempting, with so much uncertainty over the prospects for Europe, to conclude that the time is right for a contrarian approach to European equities - but analysis of the investment trust sector shows that, compared to historic averages, they are not cheap. In fact, discounts are tighter now than their average between the great financial crisis and the sharp rerating upwards which began with ECB President Mario Draghi's 'whatever it takes' speech in 2012 (see graph, below). Kepler Partners: A look under the bonnet of new Alliance Trust structure The average discount in the AIC...