Trusts Have Their Own Black Friday Sale
Most trust investors will be aware that discounts have widened significantly since the start of this year but the latest press release from the AIC puts it into perspective.
Dabbling With Discounts
With many of us looking to invest ISA allowances, either for the current tax year or the forthcoming one, the seemingly enormous discounts many trusts trade at might seem very enticing. But it’s worth remembering that not all discounts are equal.
Should You Avoid Investment Trusts With Premiums?
While most investment trusts still trade at a discount, increasing numbers are trading at premiums. Should we buy something that’s reassuringly expensive or be wary in case the price has been driven too high?
The Tale Of Tetragon And The Dastardly Discount
Whenever I see an investment trust trading at a discount of nearly 50%, my spidey sense starts tingling. There’s either a great opportunity… or great danger. Tetragon Financial Group is one such example. Having seen it mentioned in enthusiastic terms a few times in recent months, I decided it was worthy of a closer look.
The Caledonia Conundrum: Will That Discount Ever Narrow?
The shipping empire turned investment trust Caledonia Investments (CLDN) is currently one of my biggest holdings. It’s one of a few listed funds that is still family controlled and it boasts a 51-year track record of increasing its dividend. What’s more, it’s beaten the UK market by a respectable margin since it became a fully fledged investment vehicle in 1987. Yet it persistently trades at a discount to net assets of around 20%. So, what gives?
Should You Use Z Scores For Investment Trusts?
Whether an investment trust is trading at a discount or premium, and what sort of level it is, is one of the key metrics you’ll see mentioned when a fund is covered in the financial press. While it’s important, it’s usually a secondary investment consideration in my view, and you do need something to put it in historical context. Z scores are designed to provide this, so are they worth using as part of your research?