magazine archive
magazine archive
Investment Trusts
Don’t allow fees to become foes
Thursday 05 Oct 2017When weighing up investment trusts to add to your portfolio, cost is a key consideration. The greater the charges associated with a fund, the better your investments must perform to deliver you a return. One of the biggest costs are the fees investment trusts pay to fund managers for managing the...
Using investment trusts for activist investing
Thursday 28 Sep 2017Many people think of activist investors as private hedge funds who use their position as a shareholder in an individual company to enforce change in a business. But did you know that some of these activist investors are actually on the stock market in the form of investment trusts? It means you can...
Lowland plays the waiting game
Thursday 28 Sep 2017Run by experienced fund manager James Henderson for the best part of 30 years, Lowland Investment Company ( LWI ) has an approach of investing across the market cap spectrum on both AIM (London’s junior market) and the Main Market. This allows it to pick from a universe of upwards of 1,000 stocks...
Why do so many investment trusts raise new money at a premium to NAV?
Thursday 21 Sep 2017Is it bad practice for an investment trust to raise money by issuing new shares priced at a premium to net asset value (NAV)? It’s an interesting question given that several trusts have recently asked shareholders to pay more for assets than they are worth in order to provide more money to make...
New trust plans to shake-up investment short-termism
Thursday 14 Sep 2017A new investment trust hopes to lead the fight against investment short-termism, and at the same time fling open the doors to thousands of new investors. The People’s Investment Trust is hoping to raise £125m and float on 17 October. Retail investors can take part in the IPO (initial public...
Contrarian calls from two canny trusts
Thursday 07 Sep 2017C ontrarian investors look for companies whose potential for share price growth or recovery has been overlooked by the market. This style requires nerves of steel; humans have evolved to like to belong to a group or feel a part of something bigger, so taking a contrarian stance is uncomfortable and...
New stars of the investment trust space
Thursday 24 Aug 2017Investors hunting for reliable income streams are helping drive the value of investment trusts up to new heights, some up almost ten-fold over past five years. Research by the Association of Investment Companies has reveals how the net asset value of dividend-paying investment trusts has soared,...
Why investment trusts use gearing
Thursday 17 Aug 2017Investment trusts have a thrust button they can push to boost returns, it’s called gearing. This involves the manager using debt to increase the level of holdings rather than having to sell some securities they’d rather keep to fund future purchases. This facility is not available to open-ended...
Fund managers dismiss tech bubble fears
Thursday 10 Aug 2017Record-setting share prices this year are sparking renewed fears of a technology sector sell-off of potentially epic proportions. Share prices in industry giants including Amazon, Apple, Facebook and Google-parent Alphabet have rallied strongly through 2017 to trade at historic levels. The S&P...
Four ways to use investment trusts
Thursday 03 Aug 2017Record issuance of investment company shares during the first half of 2017 has propelled industry assets to an all-time high of £167.9bn. Ten new initial public offerings raised £1.5bn, while secondary issuance reached £3.3bn – a record over a half-year period. The closed-end structure holds...