The sharp increase in interest rates over the last year or so has provided a real headwind for the majority of investment trusts with many now available at a sizeable discount to NAV.
Last week’s surprise fall in UK inflation to 6.7% enabled the Bank of England to leave interest rates unchanged at 5.25% after 14 successive increases.
The recent acquisition of the Round Hill Music Royalty Fund by Alchemy Copyrights at a 67% premium to the share price has reignited interest in this unusual area of the markets.
The uncertainty around the future path of interest rates has resulted in the majority of investment trusts that are sensitive to this area trading at a discount to their net asset value.
It has been a disappointing six months for the £1.3bn BlackRock World Mining, which saw its NAV decline by 7.1% in the first half of the year with the share price down 10.3%.
Nick Sudbury checks back in on this fund and the potential opportunity driven by its widening discount.
The easiest way to diversify your portfolio is to add overseas exposure using a global fund.
One of the few value funds to survive the decade or more of ultra-low interest rates is the £780m Temple Bar, which has recently released its interim accounts.
Bruce Stout, the long-standing manager of the £1.7bn Murray International Trust has just announced that he is going to retire in June 2024.
It has been an interesting first few years for the £2.5bn Smithson, which became the largest investment trust IPO when it floated in October 2018.
