magazine archive

magazine archive

Investment Trusts

Cheaper and pricier trusts: private equity, biotech and China

Thursday 16 Sep 2021

A key point of difference for investment trusts compared with other types of fund is they often trade at a premium or discount to the valuation of the assets they hold. A particularly interesting situation to keep tabs on is where relationship between the share price and the net asset value of a...

Trust dividends more resilient in pandemic than headlines suggest

Thursday 02 Sep 2021

As companies rushed to cut or suspend dividends in the wake of the pandemic this had a knock-on effect on the investment trusts which held their shares. Thanks to the ability to use revenue reserves to smooth out any volatility in dividend payments, there was a lag effect in place. Between January...

Why renewable trusts trade at premiums despite patchy performance

Thursday 19 Aug 2021

There is no doubt that funds focused on ESG (environmental, social and governance) factors are still very popular, especially with younger investors, although the UK is still some way behind Europe on this score. A recent note from analysts at Liberum provides some details. ‘Investment flows into...

Beijing clampdown could make investors reassess China exposure

Thursday 05 Aug 2021

During the final week of July, Chinese shares endured heavy selling with the CSI 300 index, the MSCI China Information Technology index and the Hang Seng Tech index plunging into negative territory for the year. As a result, many popular open-ended China-focused funds such as Allianz China (BKFW2B5...

This FTSE 100 trust will let you earn alongside Taylor Swift and Lady Gaga

Thursday 29 Jul 2021

Despite its status as a FTSE 100 company, investors may still be unfamiliar with Pershing Square Holdings ( PSH ) . Yet the trust provides access to the stock picking acumen of Wall Street hedge fund manager Bill Ackman and this article seeks to remedy any ignorance of the vehicle. The trust was...

International Biotech looks for M&A booster shot

Thursday 22 Jul 2021

When Kate Bingham, managing partner of SV Health Managers LLP was appointed chair of the UK Vaccine Task Force by the Government, it made life awkward for the team managing the International Biotechnology Trust ( IBT ) . That’s because Bingham oversees the unquoted part of the portfolio,...

Why don’t investment trust prices move in line with net asset value?

Thursday 01 Jul 2021

Have you ever bought an investment trust only for the share price to fall by a greater amount than the decline in its net asset value? There is often a good reason why the shares are reacting in that way. The structure of investment trusts, which sees their shares traded on the stock market, means...

More investment trusts look to invest in private companies

Thursday 17 Jun 2021

Despite the many thousands of stocks listed around the world, a rising number of investment trusts are looking to add or increase their exposure to unlisted companies as more businesses stay private for longer. Baillie Gifford UK Growth ( BGUK ) is one such trust, and in August will seek...

Managers with large ‘skin in the game’ outperform those without it

Thursday 17 Jun 2021

When you invest in a fund or investment trust you are putting your hard-earned cash in the hands of a professional fund manager and asking them to make decisions on what to do with it. Knowing that said professional has at least a portion of their own wealth tied up in the fund offers a level of...

How the ‘Heineken Index’ can refresh your returns

Thursday 10 Jun 2021

Since the Covid bottom in March 2020, London’s FTSE 100 has rebounded by 36% to 7,061.78 points, but the FTSE 250 has rallied an even more impressive 67.8% to 22,813.47 and this index of ‘second liners’ is testing new highs. Mid cap companies are attractive to investors for a variety of reasons;...