With more than a quarter of investment trusts trading on a premium currently, Simon White, head of investment trusts at BlackRock, asks if investors should avoid them over the long term
Despite investment trusts and open-ended funds increasingly being assessed side-by-side, the discount/premium issue is often still at the front of potential investors' minds. Investors can find the management of discounts and premiums - particularly in the context of managed portfolios - a source of complexity. Also, as discounts have given way to premiums in many cases, particularly for some income trusts, it has raised the question as to whether investors should eschew purchasing investment trusts trading on a premium. Narrowing discounts In recent years, discounts have narrowed ...
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