magazine archive
magazine archive
Investment Trusts
Does it matter who owns the investment trust I want to buy?
Thursday 07 Oct 2021I look at lots of different factors when I’m researching investment trusts and one that I’ve spotted recently is the percentage of the trust that’s owned by institutional investors. Does this hold any relevance? For example, if one trust had 20% held by an institutional investor and another had 80...
US trust stars earning their stripes
Thursday 30 Sep 2021While the US equity market has had a stunning rally off the Covid lows, with many commentators seeing a bubble ready to pop, investors simply cannot afford to ignore what remains the world’s largest and most liquid stock market. For those retail investors that just don’t have the time to monitor...
Catch these star turn investment trusts on the way up
Thursday 23 Sep 2021In the same way investors can make a mint by backing a mythical ‘10-bagger’ early doors, fund fanatics can make big gains by catching an investment trust on the way up, before it begins its rise through the market capitalisation ranks and potentially even joins the likes of Scottish Mortgage ( SMT...
Cheaper and pricier trusts: private equity, biotech and China
Thursday 16 Sep 2021A 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 2021As 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 2021There 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 2021During 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 2021Despite 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 2021When 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 2021Have 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...