Smithson (SSON) £12.84

Loss to date: 32.9%

Original entry point: Buy at £19.15, 2 September 2021

Shares in Fundsmith’s mid-cap focused investment trust Smithson (SSON) are now trading at an 8% discount to net asset value, a significant change to the premium at which it has generally traded since inception in 2018.

The company’s focus on quality has been at odds with a market rotation into value since last November and the situation has been exacerbated by the conflict in Ukraine.

When Shares interviewed manager Simon Barnard in late 2021 he noted the trust has at least a 10-year investment horizon and that even a market rotation over two to three years wouldn’t change the approach.

We’re going to adopt the same policy; we still think Smithson is a great way to get exposure to excellent small to medium-sized businesses which, because they are less mature, have room to grow over the long term.

The April 2022 factsheet revealed no outright sales or purchases of holdings in the month, which underlines the ‘steady as she goes’ approach.

SHARES SAYS: The discount to net asset value is a good opportunity for patient investors to top up holdings in the trust. Stay positive. 

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