Investment trusts offer some selective bargains

Investors hoping to bag a bargain in the uncertain markets could turn to investment trusts, say analysts. While discounts are not as wide as they have been in previous market downturns, a number of areas look very good value. “For investors prepared to take a long-term contrarian view, current market levels may prove an interesting entry point,” says James Brown, an investment trust analyst at Winterflood Securities. Brown accepts there is still significant downside risk in the short term, but says earnings multiples for most sectors are on historically low levels. He believes prices already reflect a significant fall in values. The investment trust sector with the largest average discount is property. “The current discounts in property are a buying opportunity,” says Daniel Lockyer, a fund manager of the Iimia investment... [read full story]