Fiona Hamilton

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.

Miner raises payout in tough year

BlackRock World Mining Trust (BRWM) aims to maximise total returns from investing in a globally diversified portfolio of mining and metal assets. Its report for the year to 31 December 2018 shows shareholders’ assets of £685 million.

Throgmorton trims losses via shorts

BlackRock Throgmorton Trust (THRG) invests in UK mid- and small-cap companies for long-term growth and attractive total returns. Its annual report for the year to 30 November 2018 shows shareholders’ assets of £380 million.

Income payouts raise Latin America profile

BlackRock Latin American Trust (BRLA) targets long-term growth and total returns primarily through investing in quoted securities in Latin America. Its report for the year to 31 December 2018 shows shareholders’ funds of $255 million (£204 milllion).

Will Landers, who had managed BRLA since March 2006, left BlackRock in December 2018. Sam Vecht and Ed Kuczma succeeded him as co-managers.

Investment trusts with plenty of potential for adventurous investors

Most Asia Pacific ex Japan trusts are currently less than fully invested, and it is not hard to see why. China is the dominant regional economy, and its confrontation with the US over trade terms, forced technology transfers and state interference threatens to exacerbate the deceleration in its growth, with companies in neighbouring states at risk of being caught in the cross-fire.

Rising oil prices are another problem for a region that is a substantial importer, as is a strong dollar, given that a lot of Asian borrowing is dollar-denominated.