by Jennifer Hill from interactive investor, 18th December 2023:
Investors looking to bag a bargain need look no further than the investment trust sector where risk-off sentiment has this year sent discounts to levels not seen since the financial crisis.
At the end of 2021 – before the war in Ukraine fuelled energy and food price inflation, leading to sharply rising interest rates – the average investment trust discount stood at 2.2%. By the end of October 2023, the figure had ballooned to 16.9% – the widest month-end discount since the financial crisis, according to the Association of Investment Companies (AIC)…
We asked a range of advisers, wealth managers and analysts to name the bargain investment trust they would like to find in their Christmas stocking this year.
HydrogenOne Capital Growth
– and its 52.5% discount – is QuotedData’s best bargain. “HGEN has great potential,” says its head of investment companies James Carthew. He adds: “The two-year-old fund has established an interesting portfolio of businesses that are seeking to profit from the rapid expansion of the green hydrogen sector. Globally, governments have recognised the need to decarbonise the existing hydrogen sector and there’s also considerable potential demand as we seek ways to decarbonise heavy industry and transport.”
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