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The FTSE 100 is trading just shy of its all-time high of 8,885 points reached on 10 June 2025. Investors have finally started returning to the UK market after years of underperformance, driven by stabilising interest rates, undervalued blue chips, and strong earnings in cyclical sectors.
Housebuilders have been leading the charge as mortgage rates cool, while precious metals stocks continue to benefit from safe-haven demand. However, not every part of the market has caught up with this momentum. In particular, some investment trusts and closed-end funds (CEFs) remain significantly undervalued, despite holding high-quality assets.
Trusts trade like shares but can often lag behind market movements due to their pricing structure — they’re based on demand for the fund, not just the value of its holdings. That can create buying opportunities when sentiment is slow to catch up to…
