Average investment trust discount close to narrowest level in 15 years

Report from trust analysts Stifel

Investment trust discount levels have significantly narrowed in recent weeks as stockmarkets hit fresh highs, but analysts at Stifel warned some trusts remain vulnerable to an "equity market shake-out".

In recent weeks, a number of indices have hit all-time highs including the FTSE 100 and 250 and the S&P 500. At the same time, the investment trust sector's average discount is edging closer to its narrowest level in 15 years of around 5%, compared with an average discount of 11% across all sectors immediately after the EU referendum in June last year, which provided a "signficant value opportunity" in certain sectors. Iain Scouller and Maarten Freeriks, analysts at Stifel, said this reflects supply and demand dynamics for trust shares against a backdrop of strong market returns, but...