The average investment trust discount is now close to the lowest it has been for over 30 years. Tim Cockerill, investment director at Rowan Dartington, asks if the trend is down to RDR.
The potential for the discount on investment trusts to close has always been one of their attractions, and 2013 saw this happen across all sectors. The great thing about this is investors benefit because share prices rise more than the rise in the underlying net asset value (NAV), so it is a good way to generate outperformance. There was a lot of talk in the run up to the start of the Retail Distribution Review (RDR) as to whether it would be a major factor in influencing the demand for investment trusts; the logic being an independent adviser now had to give as much consideration to inv...
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