Shares magazine

Magazine archive

Investment Trusts

Understanding how investment trusts manage discounts and premiums

Thursday 14 Dec 2017

The closed end structure of investment trusts means they can trade at a premium or discount to the value of their underlying investments or net asset value (NAV). This is typically dependent on investor demand for the shares. Some trusts look to counteract this situation by employing ‘discount...

Using investment trusts to access smaller companies in the US

Thursday 07 Dec 2017

Many investors will be familiar with the range of smaller companies on the UK stock market, but how well do you know small caps listed overseas? Using investment trusts is an easy way to access exciting companies lower down the market cap spectrum as the fund managers do the hard work finding the...

A safer way to get international exposure

Thursday 30 Nov 2017

There’s a neat trick investors can use to gain exposure to international earnings without buying a single overseas-listed stock. The US, Europe, China, India plus emerging markets in Latin America, Asia, Africa and the Middle East are all accessible from the relative comfort of the London stock...

The investment trusts with double discounts

Thursday 16 Nov 2017

As global stock markets roar to all-time highs investors face an increasingly tricky hunt for value. One of the most popular ways to identify value within the investment trust space is to look at the discount to net asset value or NAV per share. In other words, how much lower is a trust’s share...

The appeal of looking beyond the UK for dividends

Thursday 09 Nov 2017

The Bank of England’s recent move to raise UK interest rates from 0.25% to 0.5% reflects a determination to get a grip on inflation, often dubbed the ‘cruellest tax’, since it erodes savers’ purchasing power. Those investors concerned by inflation and the impact of Brexit on domestic earnings may...

Adventurous trusts to Putin your portfolio

Thursday 02 Nov 2017

A deteriorating relationship with the US and weak oil prices have weighed on the Russian market for some time. Yet Russia is adjusting to the environment it finds itself in and earnings growth is beginning to materialise. We believe now is a good time for investors with a higher appetite for risk...

Bargain trusts on the hunt for ‘ten-baggers’

Thursday 19 Oct 2017

Investment trust shares can trade either at a discount or a premium to their underlying assets or net asset value (NAV), depending on factors such as current market appetite for the strategy or the performance track record of the manager. While share prices that trade at a discount to NAV are quite...

Don’t allow fees to become foes

Thursday 05 Oct 2017

When 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 2017

Many 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 2017

Run 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...

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