Investment Trust Bargain Hunter

Bargain Hunter: equity income investment trust on rare double digit discount

The past decade’s bull market has made it hard to find investment trusts sitting on double-digit discounts. Almost every asset has performed well, and investors have piled in accordingly.

That’s proved equally true of the UK equity income sector, says Simon Moore, senior investment manager at Seven Investment Management (7IM). With investors’ hunger for yield and the sector housing some of the oldest, largest and best-known investment trusts in the industry, there has been no lack of interest.

Bargain Hunter: Europe’s woes force Rated investment trust to 9.5 per cent discount

Henderson European Focus Trust (HEFT) has seen its discount slip to almost 10 per cent after a period of poor performance. 

The trust, which remains our Money Observer Conservative portfolio tip and is also a 2018 Money Observer Rated Fund, has underperformed its peers of late. At the same time, poor sentiment toward the region has pushed the £298 million trust firmly out of favour with investors.

Bargain Hunter: Buying opportunity on an 8% discount

For the last couple of years, the general consensus among professional investors has been that there are two areas of the world that value investors should be targeting: Europe and Japan.

Cheaper valuations compared to other markets have whetted the appetite, while the economic picture has also been seen to be favourable.