Law Debenture, Lindsell Train, Sanditon: The 'hidden' value of the best known trusts

Nick Sketch, senior investment director at Investec Wealth & Investment, looks at how some trusts with under or 'conservatively' valued assets could hold the best return opportunities.

Many investment trusts are attractive enough to warrant the extra work one needs to do to make good investment decisions. And it is important to do the work, as buying what has just performed the best is even more dangerous in trusts than in open-ended funds. An example of where doing a little extra work provides better understanding comes from ITs with assets that may not be fully valued in the published net asset value (NAV). Probably the most famous is Law Debenture (LWDB). This £650m IT looks expensive, with a current price at the time of writing of around 523p and a published NAV...