Investors should consider this top-performing investment trust

The team at Miton Global Opportunities Trust is expert at sifting through discounted trusts. Max King tells us why.

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The average discount to net asset value (NAV) in the investment trust sector has fallen from 10% at the end of June to 6.8%,
(Image credit: © Getty)

The average discount to net asset value (NAV) in the investment trust sector has fallen from 10% at the end of June to 6.8%, but there is still no shortage of trusts trading on far higher discounts. Some of these will prove to be bargains, producing compound returns through the combination of strong underlying performance and narrowing discounts. Others will prove to be lame ducks, justifying the high discount. It takes experience, deep knowledge and a great deal of due diligence to sift the gems from the dross, and even then mistakes are inevitable.

It’s tempting to buy a selection of high-discount trusts in the expectation that the bargains will counterbalance the lame ducks. But most investors will be wary of having too many holdings and prefer to focus on mainstream trusts rather than the specialist, esoteric or problematic trusts trading on large discounts.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.