The average discount for an investment trust, excluding 3i, widened to 15.2% from 13.75% this year, despite record share buybacks totaling £6.95bn in the first 11 months, according to the Association of Investment Companies.
The year also saw 10 mergers of investment companies, doubling the previous record of five set in 2021. Meanwhile, five trusts were liquidated and 32 changed their fees to account for discounts.
Although discounts continued to widen, the average trust had a share price total return of 14.8% in 2024 to 6 December. The Growth Capital sector led returns 48.4% while private equity followed at 41.7%.
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Just two trusts, Chrysalis Investments and North American Income, opted for a change in manager for 2024.
Richard Stone, chief executive of the AIC, said: “Discounts have remained wide this year, prompting boards to take action. We’ve seen a record number of mergers, record share buybacks and 32 investment trusts have cut their fees.
“So far this century, investment trusts have weathered the financial crisis, the dotcom boom and bust and a global pandemic. As we look forward to 2025, we will continue to see the investment trust industry innovate and adapt to meet investors’ needs.”
