Investors sceptical listed alternatives sector premium will return within three years

Concerns on valuation transparency

Investors in alternative investment trusts are sceptical that the sector will return to trading at a premium to net asset value within the next three years, according to a survey by Stifel.

The survey, which polled investors, directors, managers, and other stakeholders, found that 68% of respondents shared this outlook, while fund managers were more evenly divided with a 50/50 split. Stifel analysts Sachin Saggar, William Crighton and Iain Scouller said it is likely these results are "self-fulfilling", with the potential for discounts to become embedded and positive macro tailwinds among other factors required for premiums to return. Despite the scepticism, more than half of respondents believe listed alternatives are well positioned to compete with private funds and new...