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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.

 
Investment Trust Insider: issue 33 out now!

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.

You can access issue 33 of Investment Trust Insider here.
If you have any problems please use this
PDF version instead.

4 comments so far. Why not have your say?

S_M

Nov 30, 2016 at 07:52

Gavin does anyone proof read this document? Whilst it is informative and useful there are a few errors on the graphs, such as JEO underperforming the FTSE All Share index despite being quoted as producing a return of 205% (incorrectly annotated I suspect).

WPCT, I am sure that Neil Woodford is a investment wizard but even he has not invented time travel yet (see dates at bottom of graph).

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Micawber

Nov 30, 2016 at 08:17

Another interesting issue. Thanks for following up on Barnett and I look forward to your interview with him in the Dec issue.

(I was struck by how young Emma Osborne looked in the photo. If she has managed ICGT since 1981 then, assuming age 25 at that time she must be around 60 now...)

Another suggestion for a future article or two: private equity ITs; and comparison of pros and cons versus VCTs

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Suzie B

Nov 30, 2016 at 14:47

Gavin - JEO outperforms the OEIC but charges a performance fee so is more expensive. What is the comparison after fees?

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Sara G

Dec 03, 2016 at 12:05

Excellent issue - in particular the article on gearing.

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