A discount to net asset value should never be the primary reason for buying this type of fund, says Max King. These seven, however, look too cheap and boast encouraging long-term records
Questor investment trust bargain: Smithson, the Fundsmith for smaller stocks, proved itself during the pandemic last year
7 January 2021 • 5:00am
Smithson Investment Fund holds the likes of Domino’s Pizza and Equifax, the credit score agency
Credit: Domino s/PA Wire
The pandemic has provided Smithson, the global investment trust for smaller and medium-sized companies from the Fundsmith stable, with its first major test. And so far it has done exactly what it set out to do: it has delivered steady returns despite the sharp market sell-off in March.
Over the past 12 months Smithson’s share price has risen by 29pc, in line with its net asset value, and has outpaced the 13pc rise in the MSCI World Small Cap index.