Our screen looks at investment trust valuations relative to their historic premium to discount range. Some trusts that historically have tended to trade at a premium are now at a slight discount. Could this be a buying opportunity or are the big discounts in riskier asset classes a warning to tread carefully?
- Emerging markets have had a rough 2018 but the top two trusts in our last top 10 portfolio of the year, are focussed on general EM and Latin America.
- Weakness in equity markets has left several investment trusts on substantial discounts to net asset value (NAV).
- Murray International (MYI), Caledonia (CLDN) and Martin Currie Asia (MCP) are all below their long-term average valuation relative to NAV.
