RE: Discount to Nav6 Jun 2026 18:29
The discount (or premium) to NAV is more reflective on the ability of the managers to pick winners. Both investment trusts have exposure to IT but SMT has a tiny premium (under 1%) to NAV. The principle difference is in the perception that INSTITUTIONAL investors have for where technology is going. And the best guide is to look at the top 10 holding in each IT. PCT remains rooted with the current drivers (Nvidia, TSMC, Google in 2 iterations, Broadcom etc) whereas SMT has leaned to the future drivers (perhaps), these being space based.
FWIW, IMO both are excellent holdings to have in any portfolio but especially one in an early and mid statge of expansion. We are in a bull run for IT and it is set to grow for at least the next 3 years. Again, this is my opinion and certainly not factual or assured. And, for good measure, I also own shares in indivudual technology based companies such as Nvidia, Amazon, Google, Microsoft, Broadcom, Samsung and ASML. What I am not convinced about is space as a resource at this stage. Yes, I can see it a source to dump toxic waste, to mine for resource and to provide communication via satellite as the world moves to fibre for communication rather than copper, but I am more inclined to weight PCT over SMT as far as technology goes as the premium for space stocks seems too great. But, hey, what do I know? I'm just an average herbert.