Investors' Chronicle Investment trusts & Rightmove: The Companies and Markets Show
Nov 21, 2025
Val Cipriani, an investment journalist specializing in trusts, discusses the narrowing discounts and increased M&A activity in the sector. Holly McKechnie, a financial analyst, shares insights on a significant rise in buybacks and their effectiveness. Hugh Moorhead, a company analyst, breaks down Rightmove's £60m AI investment plan and the market's concerns, including potential litigation challenges. Together, they explore trends, challenges, and strategic moves shaping investment trusts and Rightmove's future.
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Discounts Are Narrowing Through Shrinkage
- Investment trust discounts have slowly narrowed from their 2022 depths, aided by broader rallies and corporate activity.
- Shrinking sector supply via buybacks and mergers is compressing discounts as trusts return capital or combine.
Don't Rely Solely On Buybacks
- Don’t assume buybacks alone will permanently close discounts because effects can be temporary or limited.
- Consider alternative corporate actions like mergers, tender offers, or conversions if discounts persist.
M&A Is Becoming A Structural Fix
- Mergers and acquisitions are rising among trusts, notably in REITs and infrastructure, to create larger, more liquid vehicles.
- Post-merger performance often holds or improves but can widen immediately if cash exits aren't offered.