Large trust discounts 'evaporate' as buy-list culture takes hold

clock • 3 min read

Value is drying up among the largest investment trusts in the market, with discounts shrinking as buyers favour more liquid products.

Research conducted by broker Winterflood for Investment Week split the 281 funds in its closed-ended universe into four quarters according to market cap. It found a double-digit discount gap between the largest and smallest quartile of investment trusts. The average sub-£75m investment trust below £75.6m is trading on a discount of 13.1%, compared with just 2% for the biggest trusts, classified as those above £361m (see table below). Trusts in the top quartile by size have also seen their discounts come in at a faster pace than smaller portfolios. In January 2013 the average discou...

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


More on Investment

Partner Insight: The Federated Hermes 2024 Outlook - The nine themes that will matter next year

Partner Insight: The Federated Hermes 2024 Outlook - The nine themes that will matter next year

From geopolitical risk to the enormous challenges posed by the need for a just transition, investors face volatility and uncertainty in 2024. This will unfold against the backdrop of the largest election year in history and markets having to adjust to ‘higher for longer’ interest rates according to Federated Hermes Limited's CEO, Saker Nusseibeh

Saker Nusseibeh
clock 07 December 2023 • 3 min read
Dominic Johnson (pictured), minister of investment

Minister for investment Johnson: 'We want to work with wealth sector to mould regulations effectively'

Keynote at IW Leaders Summit

Katrina Lloyd
clock 06 December 2023 • 4 min read
The second highest return of 37% was produced by the technology and innovation sector, while North America placed third with a return of 14%.

Private equity sector tops investment trust performance tables in 2023

Association of Investment Companies study

clock 06 December 2023 • 2 min read