Three Gold Investment Trusts to Consider for Your ISA

We've identified three top-notch opportunities that look cheap compared to their historical value

Jackie Beard, FCSI 21 February, 2014 | 3:34PM

We have looked at the discount at which all investment trusts currently rated Gold by Morningstar analysts currently trade and have identified three opportunities that look cheap on this basis—at the time of writing—relative to their long-term discount (or premium) levels. 

The first is Jupiter European Opportunities (JEO). Managed by Alexander Darwell since its launch in 2000, as at February 20th this fund is trading at a discount of more than 2.5% to its net asset value. That may not sound like much, but for the last 18 months, the fund has more usually traded at a modest premium to NAV. It’s important to note that this fund is not a direct mirror of Darwell’s open-ended Jupiter European fund (also rated Gold). The investment trust has nearly one third of assets invested in the UK; it also has a bigger proportion of its assets in mid-cap names, and much less in giant-caps than the open-ended fund. 

Darwell has established a strong track record in the management of European equities. At the trust, he has produced just shy of 13% annualised performance since the end of 2000, yet turnover has generally been at the low end of the spectrum and risk has been kept well in check. While the UK weight may not suit all investors’ portfolios, there’s no doubt in our minds that Darwell is an excellent stock picker and that for European equity exposure, he’s one of the best in class. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Aberdeen New Dawn Ord258.02 GBP0.79
Jupiter European2,725.13 GBP1.28
Jupiter European Opportunities Ord708.29 GBP2.06
Personal Assets Ord44,701.38 GBP-0.55

About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA

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