Although market volatility can be a cause for concern, it can also provide opportunities to buy listed securities at lower prices than normal because they have moved down with the market. These include investment trusts, some of which can be bought at a discount to the value of the assets they hold, making it possible to invest more cheaply in popular and successful trusts that normally trade at a premium.
Strong performance
Low ongoing charge
Experienced managers
Globally diversified portfolio
Exposure to unlisted companies
Potential for volatility
Following the recent market volatility, Scottish Mortgage Investment Trust (SMT) has been trading at a slight discount to net asset value (NAV) or around par, instead of at the premium it has often been at over the past three years.