Why premiums are just as crucial as discounts

INVESTMENT TRUSTS

clock

Grant Challis, partner of Frostrow Capital, explains why boards trading at a premium should be managing share price volatility.

It is fair to say whenever the topic of investment trusts is raised, someone will mention discounts. More often than not, this will be to point out the negative aspects of discounts. Their existence is one of the reasons why investment trusts are considered so complicated, or to be avoided at all costs regardless of all evidence that suggests otherwise. However, some investors like discounts because they represent bargains. A discount can provide an attractive entry point to a trust or a sector that might have been on the ‘watch list’ for some time. Now I have a question for you: when...

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

Scottish Mortgage keeping activists at bay with ongoing share buybacks

Scottish Mortgage keeping activists at bay with ongoing share buybacks

£2bn spent on scheme so far

Eve Maddock-Jones
clock 04 July 2025 • 3 min read
IBT's Ailsa Craig and Marek Poszepczynski: Biotech innovation will overcome policy noise

IBT's Ailsa Craig and Marek Poszepczynski: Biotech innovation will overcome policy noise

Sector not primary target of US reforms

Ailsa Craig and Marek Poszepczynski
clock 04 July 2025 • 4 min read
Murray Income trust launches 'surprise' strategic review amid lagging performance

Murray Income trust launches 'surprise' strategic review amid lagging performance

Trading at 10.3% discount to NAV

Sorin Dojan
clock 03 July 2025 • 1 min read
Trustpilot