- Like many of its peers, the trust commands an eye-watering premium
- Yet a recent update suggests good times – and cheaper entry points – could lie ahead
“Am I paying too much?” has been a question asked by investors in the US tech majors for much of the last decade in one form or another, with performance ultimately suggesting an answer in the negative. But as the interest rate environment starts to turn, many are now asking whether these companies can continue to flourish in the face of tightening monetary policy – and just how much pain may be due in the near term.
A similar discussion might well be on the cards when it comes to infrastructure investment trusts. While these portfolios are quite the disparate group, most have at least one thing in common: they have traded on substantial premiums to net asset value (NAV) thanks to enormous demand for strategies that can generate high and stable streams of income.