Investment companies adopt discount controls in order to manage the discount at which their shares trade on the stock market.  Discount controls can include buying back shares, tender offers, capital redemptions, or allowing shareholders to vote on the continuation of the company.

Discount control mechanisms (DCMs) involve an action that a company will take when its discount reaches a set level.  Discount control policies (DCPs) are more common and indicate actions that a company may take at the discretion of its board, sometimes in line with a specified discount target and sometimes not.

More than two-thirds of investment companies have either a DCM or a DCP. The AIC maintains the following list of discount controls, which is updated monthly, to assist financial advisers and wealth managers in researching the discount controls of investment companies in its universe.

 AIC icon red clipboard

Latest list of discount controls (excel)

 

Source: AIC. Last updated 31st January 2024.

Disclaimer: Please note that while all endeavours are made to ensure the accuracy of the information within this file, the AIC does not accept responsibility for any errors or omissions.