signs of tightening of discounts to nav in most sectors but a short-term reversal is possible
The upturn in markets has brought discounts in the investment trust sector to their lowest level since August 2002. Paul Locke, analyst at HSBC, said this narrowing trend, judged on a market cap weighted average basis, has not been limited to a few specific trusts or sectors. Furthermore, as of 10 June only two sectors, Europe and UK Small Cap, stand on a discount wider than that of their 12-month average. To Locke this suggests that, at least temporarily, some of the risk aversion has given way to a more rounded view of pricing in the sector. 'With the world's economic fundamentals sti...
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