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Over time NAV is much more important than discount//premium. .
You accept the NAV is important. The only other constituent of the discount/premium is the share price.
So you are saying the price you buy or sell the shares for is much less important
Which makes no sense to me.
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
And the management continue to underperform, the NAV falls further behind its peers, the discount gets larger as investors increasingly realise its a fund to avoid and eventually you take your loss and get out.
Discount is often for other reasons than a lack of interest from small investors. In recent years most IT's have mechanisms to control the discount, well at least limit it.
Discount is often for other reasons than a lack of interest from small investors. In recent years most IT's have mechanisms to control the discount, well at least limit it.
Discount is an embarrasment to the Trust Managers because it shows them as a liability.
If they were acting in shareholder's interest instead of their own they could reduce the discount and unlock the NAV to the benefit of shareholders by winding up the trust. But then they would be out of a cushy job. What would they do if they weren't doing that?
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair