discount

Private equity and property trusts are offering investors an attractive entry point currently according to analysts, as market volatility has led to average discounts widening by more than 4.5% in these sectors in the first few weeks of the year.

With market turbulence increasing, Simon Elliott, head of research at Winterflood Securities, analyses how well investment companies are using discount control mechanisms to reduce volatility and ward off corporate activity.

Experts react to changes

Criticism of discount contol mechanisms

High yield products popular

The Mid Wynd International investment trust has bounced back, after switching management from Baillie Gifford to Artemis last year, with total net assets up 28% to £80.8m over the year to June 2015.

Artemis' Alex Illingworth has said the Mid Wynd International investment trust's zero discount policy means the investment trust is effectively operating as a "semi-open" vehicle.

Investment trust discounts have hit a fresh historic low, according to new figures from the Association of Investment Companies (AIC).

The key issues impacting investors

Investors' unease over the general election has been blamed for discounts on several UK equity investment trusts reaching their widest point in 12 months.