Fiona Hamilton

Investment trust portfolios - conservative tips

Our annual tips offer a conservative and an adventurous selection for seven broad categories of equity-oriented investment trusts, as well as for private equity and specialist trusts. They also include a tip from each of three investment trust specialists who provide us with valuable research throughout the year.

Alternative asset categories are covered separately in our annual niche investment trusts tips in the February issue of Money Observer Trust.

Insightful stock selections are generating strong returns

BlackRock Emerging Europe (BEEP) seeks long-term capital growth by investing in companies doing business primarily in eastern Europe, Russia, central Asia and Turkey. Its shares are quoted in sterling, but its accounts are presented in US dollars. Its report for the year to 31 January 2018 shows shareholders’ assets of £145 million*. Sam Vecht has managed BEEP since May 2009, with Chris Colunga as co-manager since March 2016. The portfolio holds 20 to 30 high conviction holdings and derivatives are used for hedging and investment purposes.

Brazil and small caps focus good for earnings prospects - annual report summary

BlackRock Latin American Investment Trust (BRLA) targets long-term capital growth by investing primarily in quoted securities in Latin America. In the year to 31 December 2017 it reports shareholders’ funds of US$280 million (£197 million). Will Landers has managed BRLA since March 2006. He favours mispriced/undervalued companies with proven management, good governance, good medium-term earnings prospects, plus strong balance sheets and cash flows. Investment decisions also incorporate a macroeconomic overview.

Investment trust awards 2018: Best infrastructure trust

Winner: 3i Infrastructure

3i Infrastructure (3IN) claims this award, having been highly commended last year. It invests mainly in unquoted companies involved in infrastructure-related activities and owning their assets in perpetuity. It works closely with them to enhance long-term returns.