What should you expect from an investment trust board?

Boards of trusts should manage premiums as closely as they manage discounts, says Grant Challis, partner at Frostrow Capital LLP.

It is fair to say that whenever the topic of investment trusts is raised, someone will mention discounts. More often than not this will be to point out the negative aspects of them: their existence is one of the reasons investment trusts are considered so complicated or to be avoided at all costs regardless of all evidence that suggests otherwise. For some investors, however, discounts represent bargains and can provide an attractive entry point to a trust or a sector that might have been on the ‘watch list’ for some time. But now I have a question for you. When discussing investment tru...