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Wealth managers unveil their top income trust picks
by Danielle Levy on Nov 07, 2012 at 13:55
Similarly, Charles Stanley analyst Stephen Peters highlights the Standard Life Equity Income trust.
He expects the UK growth & income trust sector, particularly trusts with gearing, to benefit from rising dividend payouts at the company level, boosting its attractiveness and raising the potential for dividend growth in comparison to their open-ended equivalents.
‘Being geared into companies that are paying higher than expected dividends is good for trusts that may have had to dip into their revenue reserves over the last few years, as it will allow them to top up,’ he said.
He says it is important to distinguish which trusts have had to spend cash reserves over the past few years, while selection in the sector will be driven by underlying expectations for markets.
For those with a more bearish view on markets, the lower yielding quality names of Temple Bar and Finsbury are more likely to appeal, he said, whereas the higher beta Lowland and Schroder Income Growth trusts might appeal to the more optimistic.
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- Temple Bar (Ordinary Share)
- Troy Income & Growth (Ordinary Share)
- Finsbury Growth & Income (Ordinary Share)
- Standard Life Equity Income (Ordinary Share)
- BlackRock Income and Growth (Ordinary Share)
- Lowland (Ordinary Share)
- Schroder Income Growth (Ordinary Share)
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on May 24, 2013 at 11:32