Global growth discounts fuelling quest for returns

investment trusts

global generalist trust discounts remain wide, while specialist trusts narrow

Investors are starting to eye the vast discounts at which many global growth investment trusts are trading, in an effort to secure additional returns. The trusts, often regarded at best as steady performers, are currently sitting on wide discounts. But many maintain consistent outperformance of equity markets and any narrowing of this discount, whether by market realignment or corporate action, could provide extra returns. As of 29 June, Cazenove figures had global growth trusts trading at a 9.5% discount while shares in the average UK trust were trading 5.6% below NAV. This reverses the...