Increased demand for UK SMID trusts sees discounts narrow to tightest levels in three years

NAVs slumped throughout Q4 2018

Jayna Rana
clock • 3 min read

The average discount on UK small- and mid-cap focused trusts has tightened to 6% - the lowest level seen since before the EU referendum in 2016 - following heightened demand in the wake of sharp share price falls at the end of 2018.

Many trusts in the AIC UK Smaller Companies sector and those listed as UK mid-cap funds in the UK All Companies sector saw their NAVs fall throughout Q4 last year as stockmarkets were beaten, with those more exposed to growth stocks hit the hardest. The £610m Henderson Smaller Companies trust, for example, saw its NAV total return fall by 19% during the quarter according to Stifel, as did the £320m BlackRock Throgmorton trust. In the former's half-year results released last week, manager Neil Hermon said he believes the UK economy is showing "anaemic growth" with UK consumers nervous ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment Trusts

Baillie Gifford Shin Nippon commits to performance-based tender offer amid weak five-year returns

Baillie Gifford Shin Nippon commits to performance-based tender offer amid weak five-year returns

15% of share capital

clock 25 March 2024 • 2 min read
Princess Private Equity sets out share buyback policy as it eyes rebrand

Princess Private Equity sets out share buyback policy as it eyes rebrand

Due to wide discount

Cristian Angeloni
clock 25 March 2024 • 2 min read
Friday Briefing: Livin' on a prayer

Friday Briefing: Livin' on a prayer

Excuse the subject line but I’ve not been able to get it out of my head since reading News Editor Valeria Martinez’s fascinating conversation with AEW Europe CEO Rob Wilkinson, whose firm took on management of Home REIT at the top of last summer.

James Baxter-Derrington
clock 25 March 2024 • 2 min read
Trustpilot