magazine archive

magazine archive

Investment Trusts

Why China is too big to ignore for JPMorgan Asian

Thursday 07 Mar 2019

Emerging markets have swung back into favour with investors who spent most of 2018 pulling cash out of these higher risk regions. Last year the MSCI EM Index fell 14.6% versus an 8.7% decline for the MSCI World Index, which includes major markets in Europe and the US. Well-documented trade tensions...

Should you buy investment trusts with high charges?

Thursday 28 Feb 2019

Is it worth putting money into investment trusts with high fees? Historical performance data would suggest higher-cost trusts are worth exploring although you cannot draw any firm conclusions from the data. Three of the most expensive trusts in the UK All Companies sector, as measured by ongoing...

HG Capital Trust set for software slowdown

Thursday 21 Feb 2019

Analysts 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 2019

Hedge 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 2019

Investment 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 2019

How 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...

Why are investment trusts ditching performance fees and is it a smart move?

Thursday 21 Feb 2019

Should 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...

Nine year chair cap overturned by AIC

Thursday 14 Feb 2019

Investment 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 2019

For 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 2019

Investment 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...