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Investment Trust Insider 5: Top Trusts in 2013 (where the money went)

Issue five of Investment Trust Insider is out now. We review all the launches and share issues of 2013 and pick our favourites.

 
Investment Trust Insider 5: Top Trusts in 2013 (where the money went)

Welcome to our review of 2013.

It may be a bit premature to declare the best performing investment trusts of the year but we can be sure which trusts succeeded at raising money from shareholders.

2013 has been a bumper year for trust launches and share issues. Nearly £7 billion has been invested into new and old funds as investment trust boards have responded to investors’ appetite for income and growing awareness of the advantages of investment trusts.

This month's issue of Investment Trust Insider explains how investment trusts attract new money.

We reveal the 60+ trusts that captured investors’ imagination and won the funding battle.

We also look at the astonishing recovery in private equity investment trusts.

Lastly, we pick our favourite Top Trusts from all the investment trusts highlighted in the ezine.

Happy reading!

You can access the December issue of Investment Trust Insider here.

5 comments so far. Why not have your say?

Ark Welder

Dec 18, 2013 at 22:57

Page 25: 'The new shares should be sold for more than the current share price to avoid reducing, or ‘diluting’, the investments of the original shareholders.'

Strictly speaking, new shares should be sold for more than the current NAV per share rather than share price.

e.g.

800 shares in issue, share price of 130p and a NAV per share of 125p. So market cap is £1040 and net assets are £1000.

100 new shares are created and sold into the market at 126p, so higher than the current NAV but lower than the share price.

Net assets are incresed by £126 to £1126. Divide £1126 by 900 shares gives a NAV per share of 125.11...

Obviously, the higher the price at which the new shares are sold, the greater the benefit from a NAV perspective for the existing shareholders.

If you think on it, very few investors will be willing to buy new shares at a higher price than can currently be paid for the existing ones!

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Charliex

Dec 23, 2013 at 08:06

Ark welder

Dear sir, what waffle school did you go to?

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Ark Welder

Dec 23, 2013 at 13:21

Charliex

Definately Jamie Oliver's waffle school, because I found his recipe to be the most relevant.

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Charliex

Dec 24, 2013 at 06:26

Thank you for your sense of humour, if you can't have a laugh it's a poor world!

I think I know the point you were trying to make, but you did make hard work of it! Seasons greetings to you sir!

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Ark Welder

Dec 24, 2013 at 18:22

Charliex

YOU found it hard work? I got lost after the 'Strictly speaking' bit.

I thought that it was some kind of celebrity town-crier programme on the telly.

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