- One of the more successful Asia trusts
- Playing commodity trends
Market sentiment may have picked up but external factors continue to push investment trusts into "cheap" territory. Share price discounts to net asset value (NAV) widened out across the sector in the opening months of 2024, partially reversing a recovery that started to take hold at the end of last year. That means plenty of opportunities are still out there for bargain hunters, provided they can tolerate some volatility. Disruption might also be on the cards in other forms, given that consolidation and corporate action continues to see various trusts disappear.
External factors of other kinds are still important in the shorter term, and that's something we see in the case of both trusts profiled this month. The first trust focuses on Asia but has done well by sidestepping some of the most problematic parts of the Chinese market, instead focusing on regions such as Taiwan. The team will hopefully continue to focus on the most promising trends in the region while avoiding the biggest pitfalls. Stock picking does still matter here, however, and it's worth noting that the team has had trouble on this front in India, arguably the market causing most hype in Asia for the time being.
