Investment Trusts for Income

In volatile market conditions, finding reliable income can be even more challenging. But by looking beyond the obvious, our established investment teams can pinpoint income-generating investment opportunities.

Find new ways to keep your income on track.

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A century of investment trust expertise

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A focus on dependable income, alongside the potential for growth

Choice

Equity income from the UK and Asia, plus UK and European real estate

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In contrast to open-ended funds, investment trusts can keep up to 15% of their income annually, allowing them to build up reserves during plentiful years of dividend growth to bolster pay-outs during leaner periods.

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What are the risks?

Past performance is not a guide to future performance and may not be repeated.  The value of investments, and the income from them, can go down as well as up and investors might not get back the amount originally invested.

Investments in real estate are relatively illiquid and more difficult to realise than equities or bonds.

Yields may vary and are not guaranteed.

The use of gearing is likely to lead to volatility in the Net Asset Value ("NAV") meaning that a relatively small movement either down or up in the value of the Company's total assets will result in a magnified movement in the same direction of that NAV.

There is no guarantee that the market price of shares in a UK Real Estate Investment Trust such as SREIT will fully reflect their underlying NAV.

The value of real estate is a matter of a valuer's opinion rather than fact.

These UK and European Real Estate Investment Trust should be considered only as part of a balanced portfolio, of which it should not form a disproportionate part.

Some trusts invest solely in the companies of, or in property located in, one country or region. This can carry more risk than investments spread over a number of countries or regions.

Investors in the emerging markets and the Far East should be aware that this involves a high degree of risk and should be seen as long term in nature.

Exchange rates may cause the value of investments denominated in currencies other than sterling, and the income from them, to rise or fall.

The trusts may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.

These trust may invest in smaller companies that may be less liquid than in larger companies and price swings may therefore be greater than investment trusts that invest in larger companies. 

Investments such as warrants, participation certificates, guaranteed bonds, etc will expose the fund to the risk of the issuer of these instruments defaulting on paying the capital back to the fund.