7th May 2014
Oriel Securities has issued an analyst’s note listing the 16 highest yielding investment trusts. The notes says: “With interest rates continuing at exceptionally low levels, many investors continue to seek higher yields. For those prepared to take equity risk, there are a number of investment trusts investing in equities with a yield in excess of 4.0%. In addition, the property, infrastructure and debt fund sectors also continue to offer attractive yields.
The firm notes that there are currently 16 trusts in the ‘high yielders’ list, which has increased from 10 trusts in August last year. It says the new entrants include Schroder Oriental Income, Murray International, Aberdeen Asian Income and Scottish American which made a return after dropping off the list in August.
Oriel says that in most cases this reflects falls in share prices and some dividend growth, resulting in higher dividend yields.
The list includes funds which primarily invest in listed equities with a historic yield of at least 4.0%, a significant premium to the FTSE All Share yield of 3.3%. Funds with multiple share structures and a market cap below £70m have been excluded.
|Figure 1: Funds primarily investing in equities with a dividend yield above 4.0%|
Includes: funds primarily investing in listed equities.
Excludes: funds with market capitalisations of less than £70m. Excludes funds with multiple share classes.
Discount/premiums based on estimated Fair value NAVs (ex-revenue) at close on 06/05/14.
NAV performance figures are based on diluted NAV at FV and are capital return only.