Consolidation is a growing theme across the investment trust sector against a backdrop of stubbornly-wide NAV (net asset value) discounts and increasing pressure on sub-scale funds.2024 is already a record year for M&A (mergers and acquisitions) in a sector which has just seen the eleventh such deal announced, the value-oriented Invesco Asia Trust (IAT) planning to combine with Asia Dragon Trust (

Back in the summer of 2021, we suggested the Chinese government?s clampdown on technology companies and its deeper involvement in the private sector ? which it accused of having been ?hijacked by capital? ? risked causing an exodus of foreign investment. We also put forward a list of Asia-Pacific investment companies with low exposure to China, so investors could reduce their risk but still keep t

We would hesitate to call it a wave of consolidation - maybe a ripple would be more appropriate - but this year has seen a number of mergers among investment trusts.There is a long tail of sub-scale funds and trusts in the UK all desperate to attract more investors, but with the average discount to net asset value hitting 18% at the end of October, according to research from Winterflood Securities

According to data from the AIC, the average investment trust discount to net asset value has widened from 12.2% at the end of 2022 to 14.5% as of 8 September 2023, while sector averages have generally widened. The exception is private equity, which narrowed from 25.1% to 4.5%, skewed by 3i's (III) dramatic swing from discount to premium.While this presents an opportunity to buy into parts of the m

Infrastructure trusts to mergeDeal continues trend towards consolidationAsset manager Abrdn leads the wayAgainst a backdrop of falling NAVs (net asset values) due to higher UK interest rates, and with the average discount across the investment trust sector hitting its widest level since 2008 in the second quarter, it seems more managers are biting the bullet and agreeing to merge.After consolidati

Out-of-favour Asia Pacific-focused trusts plan mergerEnlarged Asia Dragon to qualify for FTSE 250Shareholders to benefit from lower charges, improved liquidityFund management giant abrdn (ABDN) has proposed the merger of investment trusts abrdn New Dawn (ABD) and Asia Dragon (DGN) in a move that would create an enlarged fund with combined net assets north of £700 million and a market cap big enou

China's abrupt Covid U-turn has created the best opportunity in years for Asia and emerging market equities to outperform developed markets on a sustainable basis. It is likely to be one of the select few major economies where growth could accelerate in 2023 as China, where equity market valuations remain undemanding, enjoys a reopening recovery like much of the rest of the world witnessed in 2022

Asia Dragon Trust (DGN) 413pLoss to date: 19.3%Original entry point: Buy at 512p, 24 June 2021Ten months ago, we flagged an opportunity at Asia Dragon Trust (DGN) which invests in market-leading companies.Since then, the trust has faced considerable headwinds as sentiment soured towards Chinese stocks. Last year regulatory clampdown hurt equities in this part of Asia. Now, resurgence of Covid and

The beauty of investment trusts is that you can occasionally buy £1 of assets for 90p or less.Some trusts trade on a discount for a good reason such as investing in illiquid assets, namely companies where it would be difficult for the trust to sell its holdings quickly.But a few trusts trade below the value of their assets for no obvious reason, which creates a good place for bargain hunters to s

In one way or another, China has come to dominate the conversation in financial markets.Whether it's insatiable Chinese demand for everything from steel to corn to luxury handbags, or its never-ending ding-dong with the US, or whether or not you believe its GDP figures, China seems to be a big part of most stories in the financial world.And that seems to be the way its leaders like it. A recent re

Investment trusts focused on Asian markets have been increasing exposure to the region's biggest technology companies in an attempt to arrest years of modest performance.Over the last few years, Asia mega cap tech names, such as online shopping platform Alibaba and Tencent, the social network and gaming firm, have been the standout stock market performers, and they have held-up well in the market