by Dave Baxter, Investors’ Chronicle, November 12, 2024:
The past year has been an extremely strong one for markets, with many of the difficulties that emerged back in 2022 finally starting to abate for investors..
This ‘Goldilocks’ (ie, just right) backdrop has certainly worked out well for our two investment trust income portfolios.
The two hypothetical £100,000 portfolios, compiled by IpsoFacto Investor chief executive David Liddell and QuotedData head of investment company research James Carthew, both generated decent total returns as well as good levels of yield between the start of October 2023 and the end of September 2024..
How James Carthew’s portfolio performed
Carthew created his inaugural trust income portfolio for the IC last year, with a particular focus on picking up trusts focused on alternative asset classes, given they were trading on high yields and the sector had a chance of consolidating in a way that would provide an uplift for investors.
The portfolio had a 30 per cent allocation to infrastructure vehicles via positions in Gore Street Energy Storage (GSF), NextEnergy Solar (NESF) and GCP Infrastructure Investments (GCP), with 17.5 per cent in property. On top of that, he had 20 per cent in global equity trusts, 12.5 per cent in equity and bond vehicle Henderson High Income (HHI), 12.5 per cent in a fixed-income fund and 7.5 per cent in UK play Aberforth Split Level Income, which has since wound up.
It has been a highly successful year for the portfolio by most measures. Of the 10 names in the portfolio, eight managed a double-digit share price total return, with just one fund, battery storage play GSF, making a loss. Even that fared better than the two other battery storage funds which, unlike GSF, had to ditch dividends in the face of revenue pressures.
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