Investment trusts fail to squash discounts
Article Abstract:
UK investment trust discounts have widened to 11.5% for conventional trusts in 1997 from a little over 4% in 1994. Existing stockholders of investment trusts get less than they are worth if they sell when discounts are wide. Credit Lyonnais Laing analysts forecast further widening, which will create bargains for buyers. Discounts should narrow after rationalization has been carriedout but some stockholders may sell before this. Some fund managers are seeking to narrow discounts by methods such as changing investment policies.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Investment trusts - the road to recovery
Article Abstract:
United Kingdom investment trusts have underperformed, and a report by HSBC James Capel examines how they could improve their performance. Suggestions include having boards that are fully independent, and eliminating lengthy periods of notice for fund managers. Conflicts of interest should be tackled, and penalty clauses and performance fees should bemore widespread, the report argues. There is also a call for better communication between stockholder and boards.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Comment about this article or add new information about this topic:
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