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Investment trusts on surprise discounts

Not all discount-widening stems from performance trouble
Investment trusts on surprise discounts
  • We cast an eye over investment trust pricing, with a few anomolies emerging
  • Some funds have grown 'cheaper' even as performance holds up well

Investment trusts went on sale for good reason in early March. As geopolitical strife rattled markets, more than 50 trusts saw their shares trade on discounts to net asset value (NAV) not seen for 12 months or more. For brave investors, or those with a carefully-built watchlist of funds, this may well have represented a time to dive in.

Fast forward a couple of months, and the picture is less clear. Many trusts have recovered somewhat even as uncertainties linger, with discounts narrowing versus the levels we observed in early March. But there is still some good news for bargain hunters: if less obvious than before, some possible opportunities are still apparent.

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