Trustnet looks at which North American investment trusts are trading below their five-year average discount/premium level and which ones are running well ahead of the norm.
By Eve Maddock-Jones, Reporter, Trustnet, 01 December 2021
There are fewer bargains or wildly expensive trusts to be found among US investment trusts versus the UK and Global sectors, with only two trusts veering wildly from the five-year average premium/discount.
Trustnet continued its look at which investment trusts had diverged at least 5 percentage points off their five-year average premium/discount, this time looking at the IT North America and IT North American Smaller Companies sector…
Data provided by QuotedData showed just one trust per North American sector met this criteria: Baillie Gifford US Growth Trust and Brown Advisory US Smaller Companies.
The US market has been strong over the past decade, particularly the large-caps, where the technology and growth biases have produced the best returns out of any market.
Jayna Rana, investment companies analyst at QuotedData, said that when the pandemic took hold last year investors turned to growth stocks, seeking comfort in what had made the best returns in recent history…
Moving onto the IT North American Smaller Companies sector, Brown Advisory US Smaller Companies was the only trust where the share price had diverged at least 5 percentage points off its five-year average. It is now on a 4.1% discount, narrowing its long-term discount by 5.2 percentage points…
Matthew Read, senior analyst at QuotedData, said that although Siddles ran the fund with a tilt towards growth, he had a strong focus on capital preservation which had given the trust a “value flavour”. Value had been inherently out of fashion in markets over the past 10 years and this had weighed down the trust’s discount toward the end of Siddles’ tenure.
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