Where next for trust discounts?
Poor market sentiment, higher interest and discount rates affecting certain alternative asset classes, and sector-specific issues help to explain why investment trust discounts stand at their widest point since 1990 – apart from a brief moment during the financial crash of 2008-09. There seems to be no end to the bad news. The central question is whether such discounts have become endemic. Omens and experience suggest not. If so, quality companies across a range of asset classes look attractive – many of which offer attractive yields.