With many investment trusts trading close to their NAVs or at premiums, Rob Morgan, analyst for Charles Stanley Direct, explores areas of value in the IT sector.
It is always a useful exercise to monitor investment trusts. For closed-ended funds, prices are dependent on supply and demand, meaning average discounts or premiums to trusts’ net asset values tend to rise and fall with market sentiment. When investors are nervous, they buy fewer equities and funds, and when they are confident, they buy more. So discounts can reveal investors’ enthusiasm for markets as a whole. Today, the investment outlook seems benign, and discounts reflect this. According to the AIC, the average investment trust traded on a discount of 3.4% at the end of last y...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
