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Three trusts that are ripe for a re-rating

John Baron is increasing his exposure to emerging markets
September 6, 2023

Recent columns have highlighted favoured markets and sectors as the portfolios continue their pivot towards equities at the expense of other, more defensive assets, including cash. The UK market and private equity sector have been the focus of this transition, given they perhaps best illustrate the extent to which market sentiment is poor relative to outlook, and investment trust discounts have widened.

However, exposure has also been increased to other equities, including emerging markets, given the margin by which the MSCI Emerging Markets (EM) index has underperformed developed markets. A number of factors are now aligning that could make for a meaningful re-rating.

 

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