This month’s screen highlights investment trusts that trade on discounts to net asset value (NAV) and could turn out to be rebound plays, should some of the headwinds facing the global economy start to reduce.
- These include JP Morgan Chinese (JMC) which has outperformed the MSCI China index and may benefit if trade talks with the US progress.
- Japanese stocks have already had a strong 2019 and two Japanese focussed trusts – Fidelity Japan (FJV) and CC Japan Income & Growth (CCJI) are included in the top 10 portfolio.
- Hopes of a possible Brexit breakthrough, although at the time of writing Parliament remains a tricky hurdle, will be a boost for domestically focussed UK companies. Conversely, larger companies may see their shares re-rate if the pound jumps against the US dollar. The discount to NAV of some of the investment trusts in our list that include blue chip dollar-earners could be seen as providing a margin of safety.
