By Jean-Baptiste Andrieux, Reporter, Trustnet, 19 July 2023:
Despite the majority of investment trusts looking cheap, some expensive options are still worth buying, according to experts.
Data from Numis Securities shows only 22 close-ended funds are trading on a premium or 6.5% of the Association of Investment Companies (AIC)’s universe. This is less than half the number a year ago (45) and a fifth of those at the end of 2021 (105)…
The City of London Investment Trust and JPMorgan Global Growth & Income are two investment trusts that fit the bill, as they have been on premiums over the past five years…
In a more specialist area, Ashoka India Equity Investment Trust was also highlighted by experts. The trust was launched in 2018 and has traded on an average premium of 0.2% since then…
Another trust worth a look despite its premium rating is Odyssean Investment Trust, which was also launched in 2018 and operates in the IT UK Smaller Companies Sector…
A trust in the IT Japanese Smaller Companies sector shares some similarities with Odyssean: AVI Japan Opportunity Trust…
James Carthew, head of investment company research at QuotedData, said: “AVI Japan Opportunity’s focus on adding value by encouraging good corporate governance amongst undervalued small- and medium-sized Japanese businesses has delivered good returns to its investors, with its NAV returns ranking top in its sector since it was launched…
Lastly, Henderson High Income Trust is the only trust in the list with a multi-asset mandate, blending UK equity income and corporate bonds to deliver a high yield…
Carthew highlighted the attractive dividend yield (currently 6.3%) as well as the 10-year track record of annual dividend increases.
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