Consolidation is a growing theme across the investment trust sector against a backdrop of stubbornly-wide NAV (net asset value) discounts and increasing pressure on sub-scale funds.2024 is already a record year for M&A (mergers and acquisitions) in a sector which has just seen the eleventh such deal announced, the value-oriented Invesco Asia Trust (IAT) planning to combine with Asia Dragon Trust (

On 1 August the Bank of England's Monetary Policy Committee made a 5-4 decision to kickstart its rate-cutting cycle. A 25 basis point reduction in the base rate to 5% marking The Old Lady of Threadneedle Street's first cut since March 2020.This means cash savings rates are heading in one direction, down. And the lower-than-expected jump in UK inflation reported on 14 August only boosted market exp

As we move into another year there is plenty for investors to consider. Are we on the other side of inflationary pressures? Will rates be cut in 2024? What will happen with the US presidential election? In this article we address these and some other big questions for the year to come.IS THE BATTLE AGAINST INFLATION OVER, WILL RATES BE CUT IN 2024 AND WHAT WILL HAPPEN TO THE DOLLAR?A big question

We would hesitate to call it a wave of consolidation - maybe a ripple would be more appropriate - but this year has seen a number of mergers among investment trusts.There is a long tail of sub-scale funds and trusts in the UK all desperate to attract more investors, but with the average discount to net asset value hitting 18% at the end of October, according to research from Winterflood Securities

According to data from the AIC, the average investment trust discount to net asset value has widened from 12.2% at the end of 2022 to 14.5% as of 8 September 2023, while sector averages have generally widened. The exception is private equity, which narrowed from 25.1% to 4.5%, skewed by 3i's (III) dramatic swing from discount to premium.While this presents an opportunity to buy into parts of the m

Infrastructure trusts to mergeDeal continues trend towards consolidationAsset manager Abrdn leads the wayAgainst a backdrop of falling NAVs (net asset values) due to higher UK interest rates, and with the average discount across the investment trust sector hitting its widest level since 2008 in the second quarter, it seems more managers are biting the bullet and agreeing to merge.After consolidati

With banks still very much the focus of the market's attention, should investors rethink not just their direct exposure to the sector through individual stocks but also their indirect exposure through funds and investment trusts with large weightings in the sector?Shares has examined some of the funds and trusts with the largest reported exposure to financial firms as a proportion of total assets

How does a 5% return on your money sound right now? With UK interest rates showing little sign of increasing from rock bottom levels despite mounting inflation, a 5% rate is certainly appealing.If you are using your investments to pay the bills or to fund your living expenses in retirement the income you receive is vital. The great news is that the dividends from stocks and shares can offer invest

As companies rushed to cut or suspend dividends in the wake of the pandemic this had a knock-on effect on the investment trusts which held their shares.Thanks to the ability to use revenue reserves to smooth out any volatility in dividend payments, there was a lag effect in place.Between January and June 2021, payouts from investment trusts fell 3.1% to £891.9m, even though dividends from UK stoc

Investors spent 2020 worrying about Covid-19 but as vaccines rollout and economies begin to gradually reopen, equity markets are getting increasingly jumpy about a new threat - inflation.Investors should not treat these warnings lightly. The most obvious response to rising inflation for central banks (the Bank of England in our case) is to reverse 'lower for longer' interest rate trends, making

With UK companies suspending dividends left, right and centre, times are tough for income investors.One possible solution is to look to investment trusts. Many are sitting on significant revenue reserves which they can draw on during 'rainy days' to supplement their revenue and maintain dividends during 'Black Swan' events such as the coronavirus shutdown.Most income trusts have accumulated close

The quest for income is a challenging one in an environment of low interest rates but there are still plenty of assets which offer an attractive and reliable yield.In this article we take a look at where some of the experts are finding income opportunities.A DIVERSIFIED APPROACH TO FIXED INCOMEThe £170m Henderson Diversified Income (HDIV) has a flexible mandate to generate a high level of income

Little is more satisfying in investing than receiving a dividend payment from one of your holdings and investment trusts have an excellent track record of delivering a regular stream of income.Some trusts offer very attractive yields too. According to industry body the Association of Investment Companies, the average for all trusts is 3.2% but there are a significant number of trusts which offer d

Strong historical performance data doesn't guarantee a fund will continue to do well in the future, so investors shouldn't buy an investment trust solely based on how it has done in the past expecting similar returns in the future.However, past performance, particularly over the long term, is still worth considering as it provides evidence of how well a trust has done in a variety of market condit

A little understood part of the market, preference shares could be worth a look for some investors. A hybrid financial instrument with characteristics of both equities and bonds, they might appeal to older investors looking for a steady and reliable yield.WHAT ARE PREFERENCE SHARES?There are two types of shares you can own in a company: preference shares (also called preferred stock) and ordinary

A canny way for investors seeking an attractive and diversified income stream, while also eschewing excessive risk, is to put money to work with the BlackRock Global Multi-Asset Income (GB00B8C0VJ97) fund. Formerly known as the BlackRock Balanced Income Portfolio Fund - until unit holders voted for a re-positioning in January - the £73 million book seeks to provide an above-average income, withou