Goodies among the oldies

Article Abstract:

UK Income Growth investment trusts have seen widening discounts and personal equity plan (Pep) investors may find good buying opportunities. Discounts to asset value were low at the start of the 1990s when these trusts were fashionable. Some older trusts have changed their emphasis on yields, placing more emphasis on growth. They offer dividends that are higher than average and rising and this could become more attractive at a time when the stock market is volatile, though tax changes could affect these trusts.

Author: Hamilton, Fiona
Personal finance

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Add some spice with a specialist fund

Article Abstract:

Investors can include specialist investment trusts in their portfolios, such as emerging markets or industries with potential. Specialist managers may be able to identify opportunities that non-specialists would miss. They are also better able to invest in smaller firms and take risks with certain shares since they hold a wide range of stocks in that speciality. More general trusts are able to move away from a particular area if it becomes less attractive, but they may not offer an international perspective.

Author: Hamilton, Fiona
Commercial Banks, Investment Banking and Securities Dealing, Portfolio & Funds Management, Portfolio management

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To Pep or not to Pep?: the trend has been to go for full Pep qualification. But some groups have stood firmly against the trend and proved that it is possible to achieve a good rating while retaining full asset allocation flexibility

Article Abstract:

Some international investment trusts have decided to claim full personal equity plan (Pep) qualifying status, which means thye must undertake to keep at least half its exposure in the UK and EC at any given time. The pressure to preserve a respectable dividend is also increased, which could be difficult if the UK and EU markets have periods of prolonged underperformance. Many successful international trusts have decided not to opt for Pep qualifying status.

Author: Hamilton, Fiona
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Subjects list: United Kingdom, Investment companies, Mutual funds
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