Investing
Investment trust discounts reach lowest levels since records began
The average investment trust is trading at its lowest discount since records began in December 1970, according to the Association of Investment Companies (AIC).
Morningstar data shows that the investment company industry closed 2013 at a 3.4% average discount. The previous low was in February 2006 when the average investment company discount was 3.5%.
Ian Sayers, director general of the AIC, said: “The average investment company discount is at its lowest since records began, demonstrating the current strong demand for investment companies.
“A strong period of performance, the dividend track record, access to specialist asset classes and the impact of RDR [the Retail Distribution Review] have all come together to boost interest in investment companies.
“Of course it’s important to be aware that whilst the average discount is at a record low, discounts vary across the industry. Investors need to have a balanced portfolio and research potential investments thoroughly.”
