magazine archive
magazine archive
Investment Trusts
Use investment trusts to cash in on historic low valuations and high yields
Thursday 21 Mar 2019For decades UK stocks were prized by global asset managers but in the last two to three years they have been roundly shunned due to uncertainty over Brexit. The result is that on some measures the UK stock market is now the cheapest it has been for nearly 30 years. With valuations so low,...
New investment trust targets $250m to invest in US solar opportunity
Thursday 14 Mar 2019A new investment trust is about to join the stock market offering investors with a pure play on the expanding US solar sector. US Solar Fund aims to pay a 5.5% yield and a total return of 7.5% from 31 March 2020 or when all of its assets are operational. Ahead of this time it expects to pay a...
This investment trust is pinning its hopes on a banking sector rebound
Thursday 14 Mar 2019It’s been 10 years since shares started to recover from the global financial crisis-induced market collapse. However, there are pockets of the market still trying to play catch-up including financial stocks like banks which remain ‘unloved, under-owned and misunderstood’, say John Yakas and Nick...
Why China is too big to ignore for JPMorgan Asian
Thursday 07 Mar 2019Emerging markets have swung back into favour with investors who spent most of 2018 pulling cash out of these higher risk regions. Last year the MSCI EM Index fell 14.6% versus an 8.7% decline for the MSCI World Index, which includes major markets in Europe and the US. Well-documented trade tensions...
Should you buy investment trusts with high charges?
Thursday 28 Feb 2019Is it worth putting money into investment trusts with high fees? Historical performance data would suggest higher-cost trusts are worth exploring although you cannot draw any firm conclusions from the data. Three of the most expensive trusts in the UK All Companies sector, as measured by ongoing...
Why are investment trusts ditching performance fees and is it a smart move?
Thursday 21 Feb 2019Should fund managers really need any extra incentive to deliver for investors given they are already being paid a fee to do their job? Until recently it was commonplace for the managers of investment trusts to receive a performance fee on top of their management fee if they exceeded a specified...
HG Capital Trust set for software slowdown
Thursday 21 Feb 2019Analysts believe that technology investor Hg Capital Trust ( HGT ) could see fewer asset realisations this year and at lower prices – a situation that could drag on the trust’s net asset value (NAV). Hg Capital mainly invests in software businesses where it sees opportunity to improve operations or...
Pershing Square hopes quarterly dividend can put dent in discount
Thursday 21 Feb 2019Hedge fund Pershing Square Holdings ( PSH ) is introducing a quarterly dividend of $0.10 per share, one representing a 2.5% yield based on a recent $15.70 share price. The board is seeking to attract income investors and expand the investor base, in turn helping to narrow the discount to net asset...
BlackRock Throgmorton exposure to shares at nine-year low
Thursday 21 Feb 2019Investment trust BlackRock Throgmorton’s ( THRG ) equity exposure is at its lowest level in nine years according to broker Stifel, reflecting its manager Dan Whitestone’s concern about an economic slowdown. Around 90% of assets are invested in equities on a net basis; this distinction reflects the...
How do fund managers pay for new investments?
Thursday 21 Feb 2019How does an investment trust pay for a new investment if it hasn’t got inflows of cash from investors like other types of funds? It’s easy to understand once you’ve grasped the difference between investment trusts and other types of funds, namely unit trusts and Oeics. A unit trust or Oeic is an...