Election fears drive UK trust discounts to 12-month highs

Investors' unease over the general election has been blamed for discounts on several UK equity investment trusts reaching their widest point in 12 months.

In the week to 14 April, 50% of the trusts in the AIC's UK All Companies sector saw their discounts widen to a 12-month high, according to Winterflood data. The discounts grew as the general election campaign got underway last week, with Labour and the Conservatives unveiling their manifestos on 13 and 14 April respectively. Investment trusts including Mark Barnett's Keystone, John Dodd's Artemis Alpha, Philip Matthews' Schroder UK Growth, and Chris Kinder's Threadneedle UK Select have all seen discounts reach 12-month highs this month. Some of these discounts have narrowed slightl...