Is the price right?

Investment trusts are pooled investments that trade at prices above or below the value of their underlying assets. This discount - or premium - is the best known distinction between investment trusts and open ended funds - unit trusts and open ended investment companies (Oeics) that trade at their asset value. In simple terms, discounts create the opportunity to buy one pound's worth of assets for less than the pound you would have to pay if you were to buy those assets outside the trust. The discount or premium (also referred to as rating) a trust trades at reflects demand and supply in...