magazine archive
magazine archive
Investment Trusts
IPOs, closures and mergers in the funds space
Thursday 08 Dec 2016New product launches, market departures and management changes are throwing up opportunities for fund investors to consider. Fresh opportunities need to be scrutinised with care and altered mandates assessed to see whether they suit your financial needs and risk appetites. Say hello BB Healthcare...
Investment trusts on sale
Thursday 01 Dec 2016The investment companies sector has many constituents trading at steep discounts to their net asset value (NAV). Many of the widest discounts do indicate poor performance, or reflect a sector or style that is currently out of favour for a reason, although a number of consistent performers appear...
Are concentrated portfolios good or bad?
Thursday 24 Nov 2016One of the advantages of buying a fund like an investment trust is that it offers a diversified exposure, but recent analysis suggests a large number of managers like to maintain a relatively concentrated portfolio. A concentrated approach is likely to lead to more volatile returns relative to the...
Being cautious doesn’t mean sacrificing decent returns
Thursday 17 Nov 2016Investors’ patience has been tested this year by shock political results in the UK and US rocking the markets. Further upheaval is likely given rising inflation and uncertainty over the pace of Brexit and the outcome of European elections. Nervous investors cannot really afford to take their money...
Should trusts sell assets to fund dividends?
Thursday 10 Nov 2016Investment trusts are starting to embrace a technique to ensure shareholders receive dividends every year or enjoy a better yield than in the past. It’s caused some controversy in the market and could become a hot topic over the coming months. The strategy involves selling little chunks of an...
Play the emerging opportunity
Thursday 03 Nov 2016It has been a remarkable 12 months for the global emerging markets with the share prices of the 11 investment trusts in the sector increasing by an average of 35.8%. This was a welcome reversal of fortunes after years of underperformance culminating in a sharp sell-off in the run up to the first...
Put land of opportunity in your portfolio
Thursday 27 Oct 2016T he US stock market continues to surge ahead despite uncertainty surrounding who will win the presidential election. Two of the country’s main stock market indices have this year hit record highs – the S&P 500 and the Dow Jones Industrial Average. The economy is growing and the labour market...
How fund managers apply a fuel injection
Thursday 20 Oct 2016Investment trusts have a trick up their sleeve in their effort to enhance shareholder returns. ‘Gearing’ involves a fund manager using debt to invest in more companies or other assets and boost the value of a portfolio. It creates a bigger pool from which to earn dividends and/or generate capital...
City of London reveals secrets of its success
Thursday 20 Oct 2016Housebuilders represent an important element of City of London Investment Trust ( CTY ) , one of the UK’s best known investment collectives thanks to 50 years of consecutive dividend growth. Fund manager Job Curtis believes the sector, which was hit hard by the Brexit vote, is at ‘peak...
Understanding premiums and discounts to NAV
Thursday 13 Oct 2016M any investors are unnerved by investment trust discounts and premiums and it’s all too easy to be confused. Yet the concepts are quite simple and they shouldn’t put you off these investment vehicles. Understanding the difference between discounts and premiums is important. If you do not it can...