Fiona Hamilton

Investment trust discount opportunities still plentiful

Discount volatility has added both stress and excitement to this year’s market gyrations, so far as investment trust investors are concerned. Having ended 2019 at an exceptionally narrow 2%, the average discount on the trust sector plunged from 5% to 22% during the first three weeks of March, severely exacerbating the downward pressure on trust share prices as the threat from Covid-19 became frighteningly apparent.

Investment trusts: winners of the monthly savings medals 2020 revealed

The winners of our investment trust monthly savings medals ended the five years to the end of January in fine fettle. Those who invested £50 every month during the period gained up to 80% on their £3,000 stake.

The subsequent coronavirus-induced turmoil reversed much of those gains. However, past bear markets, no matter how severe, now look like blips along a multi-decade upward trajectory for US and UK equity indices. What’s more, those indices have proved they can quickly recover from setbacks.