Fiona Hamilton

Investment trust investors, it’s time to review your emerging market exposure

A lot of investors ignore global emerging markets (GEMs), which is surprising considering they account for over half the world’s population and some of the fastest-growing economies. Yes, they are risky, with arguably more scope for dramatically damaging political changes – as witnessed recently in Argentina.

In many cases their stock markets are less well regulated and less liquid than in more developed regions, and it is hard not to believe that they are more vulnerable to climate change.

Why investment trust dividend heroes are set to continue their winning streaks

The Association of Investment Companies (AIC) likes to trumpet the achievements of its dividend heroes, and rightly so.

It is no mean feat for trusts to have raised their dividends every year for at least the past 20 years, especially as the majority have raised them by more than the rate of inflation. This is great for investors who rely on dividends from their trust holdings to support their lifestyles; however, it begs the question as to how much longer these trusts can keep it up.

Winning streak continues for long-term performer

Jupiter US Smaller Companies (JUS) aims for long-term capital growth from a diversified portfolio of US smaller- and medium-sized companies. As at 30 June 2019, it had assets of £161.5 million.

The trust has been managed since 2001 by Robert Siddles, who favours a risk-averse approach, focusing on capital preservation. To this end he invests in good-quality companies with strong franchises, free cash flow and insider ownership by management, whose shares are out of favour.

New home, same manager for Jupiter European Opps

Jupiter European Opportunities Trust (JEO) invests in European equities for long-term capital growth. Although its benchmark is the FTSE World Europe ex UK Total Return index, it generally has a significant UK exposure. Its report for the year to 31 May 2019 shows assets of £927 million.

10% dividend rise welcomed by income-seekers

The Brunner Investment Trust (BUT) is managed by Allianz Global Investors. It offers a ‘one-stop shop’ for investors looking for a global portfolio of equities and a quarterly dividend, and has assets of £360 million to 30 November 2018.

Lucy Macdonald has managed Brunner’s overseas portfolio since 2005, and has been its sole manager since June 2016, when its UK and overseas holdings were merged into a single portfolio. She is Allianz Global Investors’ chief investment officer for global equities.

High-yield approach continues to pay dividends

The Merchants Trust (MRCH) is managed by Allianz Global Investors. It invests mainly in large UK-quoted companies for an above-average level of income and income growth together with long term growth of capital. Its annual report for the year to 31 January 2019 shows assets of £533 million.

Tech titan triumphs over index again

Allianz Technology Trust (ATT) targets long-term capital growth through investments in quoted technology companies on a worldwide basis. Its report for the 13 months to 31 December 2018 show assets up from £313 million to £430 million.

Eight ways that investment trusts have an edge over funds

Investment trusts, savings vehicles that have been around since the Victorian era, are regarded as the City’s best-kept secret. However, for many seasoned investors and regular readers of Money Observer, investment trusts have formed the bedrock of their portfolios for decades. One reason for this is that investment trusts offer benefits that open-ended funds don’t.

How to play the loathed UK with investment trusts

Optimism is hard to find in investment circles at present, but as the late Sir John Templeton famously said: “The time of maximum pessimism is the best time to buy”. That brings us to the UK, which has for a couple of years now been among the most loathed of regions, by both domestic and international investors.