This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.
Many investment trusts invest in private companies, as well as public ones. There are multiple advantages for those with a long-term view, as we discuss below. Following the recent sell-offs in global markets, many of these trusts are sitting on much wider discounts than before. However, we note that valuation changes for unlisted holdings are only reflected periodically. The effect of this is that, depending on the proportion of the portfolio that is invested in private companies, some NAVs can be rather stale and some ‘discounts’ may appear more attractive than they are.
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