In selecting 49 investment trusts for our Top 100 funds, we noted that these will sometimes trade at discounts or premiums, so you need to time your purchase to take advantage of these. Some of our selected investment trusts are now looking expensive, while others are looking like bargains.
Murray International (MYI) is now trading at a 9 per cent premium to its underlying net asset value. The trust aims to achieve income and capital growth through investments predominantly in worldwide equities. We tipped this on 10 November 2011 at a premium of 4 per cent and a price of 890p. We said the experience and track record of manager Bruce Stout meant this trust was worth paying a premium for. The trust now is priced at 1,058p, meaning investors who bought on the recommendation have seen an 18 per cent uplift in value.
Jupiter European Opportunities (JEO) has benefited from the recovery in European stock markets and has re-rated to trade at net asset value. We tipped this on 12 July 2012 at a discount of 7 per cent and price of 284.25p. The price has since risen to 341.50p, meaning investors have seen a return of 20 per cent over three months.
Emerging markets investment trusts are out of favour, which means this could be a good time to buy in.
Templeton Emerging Markets (TEM), one of the UK's biggest emerging markets investment trusts, is on a discount of 8 per cent. If you still believe in the long-term opportunities offered by the rising affluence of several billion people, then now might be a good moment to buy in. An alternative is Utilico Emerging Markets (UEM) on a discount of 7 per cent. This invests predominantly in infrastructure, utility and related sectors mainly in emerging markets and was short-listed for Best Emerging Markets Fund in our Fund Awards 2012. Meanwhile, if you want to go country specific, JPMorgan Chinese (JMC) is on a 13 per cent discount and has a good pedigree of investing in greater China companies.
