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Investment Trust Insider: issue 23 out now!

Equity income as you've never seen it before plus special reports on private equity and who's buying commercial property trusts.

 
Investment Trust Insider: issue 23 out now!

Hello, welcome to the new issue of Investment Trust Insider! We’ve three more topical features on investment trusts for you.

Equity income in a new light

Investment trusts would beat other types of funds in a beauty contest because of their natural endowments, such as gearing (or borrowing) which can boost returns, and revenue reserves which can support dividends.

Yet, our first feature reveals investment trusts aren’t above using a bit of cosmetics to flatter their best features! Analysis by Numis Securities shows that by taking charges from their capital growth, investment trusts can boost the dividend yields and cover they offer. They’re not wrong to do this but it’s fascinating to see what their income yields and dividend protection would be if trusts took their charges from investment income instead.

To boldly go into private equity

Discounts – when investment trust shares trade below net asset value (NAV) – are another source of fascination to investors. For example, should the double-digit discounts on private equity investment trusts be considered attractive given they’ve narrowed so much since the financial crisis? The expert opinion in our second feature is that the sector remains good value and could re-rate further.

Property plays

By contrast, commercial property trusts have seen their premiums (when shares trade above NAV) decline. The prospect of rising interest rates has cooled investor sentiment although our ‘In the Markets’ feature shows there are still buyers for trusts deemed to be resilient.

You can access issue 23 of Investment Trust Insider here.
If you have any problems please use this PDF version instead.
 

3 comments so far. Why not have your say?

Keith Cobby

Nov 26, 2015 at 13:42

Another interesting Investment Trust Insider thanks.

Two thoughts for future features. One is to look at portfolio turnover rates because I think some trusts are turning over their portfolios more quickly to generate more income to support their yields (Henderson Far East Income annual report brought this to my attention).

The second is an article on a different fund house in each issue (eg F &C, Fidelity, Aberdeen, Baillie Gifford etc) as well as the different sectors you currently publish.

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Gavin Lumsden (Citywire)

Nov 26, 2015 at 15:03

Thanks Keith, those are good ideas. I will include them in our plans for next year.

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Duckworth

Jan 16, 2016 at 09:54

Is there a way to subscribe to the investment trust Insider ?

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In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

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