View the article online at http://citywire.co.uk/money/article/a974988
Investment Trust Insider: issue 33 out now!
Time to clock which ten active investment trusts our experts recommend and gear up for views and news on 'closed-ended' funds.
Welcome to the new issue of Investment Trust Insider!
Top 10 active trusts
The City watchdog recently accused fund managers of selling investors short with actively managed funds that fail to beat their stock market indices after costs. But don’t be alarmed: investment trusts were not included in the Financial Conduct Authority’s research!
So which should you choose? Jennifer Hill has spoken to the experts and produced a list of 10 genuinely active trusts, whose managers don’t churn their portfolios, take a long-term view and who engage with the companies in which they invest shareholders’ capital.
Gearing: who controls trust’s secret weapon?
The ability of investment trusts to use gearing – or borrowed money – to boost shareholder returns sets them apart from other types of funds. While it can make short-term returns more volatile, over the long term gearing usually generates better results.
Robert St George examines how investment trust boards and fund managers work together in deciding what their policies to gearing are and how to implement them.
The Edinburgh question
Our ‘Buy, Sell, Hold’ round-up of analyst opinions and recommendations looks at a question often asked by investors. Which of Mark Barnett’s equity income trust is best: Edinburgh or Perpetual Income & Growth?
We also look at a trio of Asia funds whose recent results and actions have been encouraging and a European fund whose new manager could signal a change in fortune.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
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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