- The value rally of the last half year has had a big effect on investment trust shares
- We look at where discounts and premiums look more noteworthy
November’s vaccine news has been quite the gamechanger for markets. Roughly six months on from the “Vaccine Monday” of 9 November, when the Pfizer BioNTech Covid-19 shot was reported to have an efficacy of 90 per cent, many previously unloved cyclical sectors are sitting on decent gains. A fierce value rally has dominated this period, with MSCI World Value index making a total gain four times greater than that of its growth equivalent from 9 November to 20 May.
If the last decade has taught us anything about factor investing, it’s that value rallies can prove notoriously short-lived. The value style delivered rich returns in the second half of 2016, for example, only for this momentum to peter out at the turn of the year. But putting these uncertainties aside, the price action of the last half year has made a big difference to how some of your holdings may be valued. In the investment trust space, it is worth assessing what exactly has happened – from old favourites now looking less expensive to the evaporation of certain bargain opportunities.