magazine archive
magazine archive
Investment Trusts
Why are investment trusts ditching performance fees and is it a smart move?
Thursday 21 Feb 2019Should fund managers really need any extra incentive to deliver for investors given they are already being paid a fee to do their job? Until recently it was commonplace for the managers of investment trusts to receive a performance fee on top of their management fee if they exceeded a specified...
HG Capital Trust set for software slowdown
Thursday 21 Feb 2019Analysts believe that technology investor Hg Capital Trust ( HGT ) could see fewer asset realisations this year and at lower prices – a situation that could drag on the trust’s net asset value (NAV). Hg Capital mainly invests in software businesses where it sees opportunity to improve operations or...
Pershing Square hopes quarterly dividend can put dent in discount
Thursday 21 Feb 2019Hedge fund Pershing Square Holdings ( PSH ) is introducing a quarterly dividend of $0.10 per share, one representing a 2.5% yield based on a recent $15.70 share price. The board is seeking to attract income investors and expand the investor base, in turn helping to narrow the discount to net asset...
BlackRock Throgmorton exposure to shares at nine-year low
Thursday 21 Feb 2019Investment trust BlackRock Throgmorton’s ( THRG ) equity exposure is at its lowest level in nine years according to broker Stifel, reflecting its manager Dan Whitestone’s concern about an economic slowdown. Around 90% of assets are invested in equities on a net basis; this distinction reflects the...
How do fund managers pay for new investments?
Thursday 21 Feb 2019How does an investment trust pay for a new investment if it hasn’t got inflows of cash from investors like other types of funds? It’s easy to understand once you’ve grasped the difference between investment trusts and other types of funds, namely unit trusts and Oeics. A unit trust or Oeic is an...
Nine year chair cap overturned by AIC
Thursday 14 Feb 2019Investment company chairs will no longer be forced to step down after nine years on their boards. The Association of Investment Companies has persuaded the Financial Reporting Council, the accountancy regulator overseeing the UK Corporate Governance Code, that investment trusts are a special case...
Supermarket Income REIT shows benefits of inflation-linked leases
Thursday 14 Feb 2019For all the challenges facing the groceries sector, Supermarket Income REIT ( SUPR ) is continuing to show the defensive qualities of investing in supermarkets. The property portfolio comprises six sites, all of which have leases linked to retail price index (RPI) inflation. They are used by their...
Stifel gives thumbs-up to Worldwide Healthcare Trust
Thursday 14 Feb 2019Investment funds expert Stifel has turned positive on Worldwide Healthcare Trust ( WWH ) , a capital growth-focused pharmaceutical and biotechnology investor. ‘After the market volatility in the fourth quarter of 2018, some investors may be looking to reduce their portfolio cyclicality,’ argues...
Fund manager Nick Train reveals his winning investment formula
Thursday 14 Feb 2019Fund manager Nick Train is regularly in the spotlight thanks to the popularity of funds run by his investment company Lindsell Train such as Finsbury Growth & Income Trust ( FGT ) which has outperformed the FTSE All-Share in nine of the past 10 years. Despite generating significant returns for...
Temple Bar manager makes the case for value
Thursday 14 Feb 2019There has been a lot of talk in the market in recent years of value being out of favour and growth stocks firmly in the ascendancy. Investors have certainly been prepared to pay a premium price to secure exposure to rapidly expanding companies or at least those who are perceived to be growth...