- Year end rally was kind to our "Top 10" portfolios
- Quality trusts could at last be poised to narrow discounts
Is the worst finally over for investment trusts? That’s a compelling enough narrative, what with interest rates appearing to have peaked and markets looking healthier, for now. Discounts are still wide across the sector and a shift in sentiment might be enough to motivate a few bargain hunters. Those bargains still appear commonplace across all manner of different funds and sectors, from private equity vehicles to infrastructure, debt and equities. Investors also have plenty of potential special situations to choose from as wide discounts force boards to take action, from strategic reviews to mergers and buybacks.
If a recession kicks in and more pain is yet to come - both for the markets and our wallets - it could be portfolios of quality shares that hold up better than most. This month we profile two trusts that fit the bill, even if they fish in different waters and come with very different profiles. Smithson (SSON) comes blessed with the strong Fundsmith brand, albeit that’s a big name to live up to.
