Commodities funds and trusts offer a way for investors to benefit from rising prices. Money Observer picks its top four in the sector in: Rated Funds: Top four commodity investments.
Oriel's top 10 high-yielding equity investment trusts
By Tanzeel Akhtar | Fri, 16th August 2013 - 10:37
Iain Scouller, contributing analyst at Oriel Securities, highlights 10 investment trusts ideal for investors willing to take equity risk.
Last week's comments by new Bank of England governor Mark Carney indicating that interest rates are likely to stay at historic lows for years to come is bad news for savers dependent on deposit accounts.
Scouller highlights 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.
Below are 10 investment trusts which Oriel Securities says are "high yielders".
These funds primarily invest in listed equities with a historic yield of at least 4.0%, a premium to the FTSE All Share yield of 3.3%. Funds with multiple share structures and a market cap below £50 million have been excluded.
Scouller says: "The only equity funds in the table to see an increase in yield since our last comment were some of the resource specialists (BlackRock Commodities Income and BlackRock World Mining) and emerging market funds (BlackRock Latin American and Henderson Far East Income) after both these sectors saw considerable price weakness."
|Fund||Market cap (£million)||Yield (%)||Discount|
|Blackrock Commodities Income||105||5.4||0.8|
|Henderson Far East Income||336||5.2||1 prem|
|European Assets Trust||150||5.0||0.3|
|Shires Income||72||5.0||3.9 prem|
|Henderson High Income||169||5.0||8.4 prem|
|Merchants Trust||501||4.8||2 prem|
|Blackrock World Mining||871||4.3||6.1|
|Blackrock Latin America||180||4.2||8.3|
|Includes: funds primarily investing in listed equities.|
Excludes: funds with market capitalisations of less than £50 million. Excludes funds with multiple share classes.
Discount/premiums based on estimated fair value NAVs (ex-revenue) at close on 15/08/13.
NAV performance figures are based on diluted NAV at FV and are capital return only.
Source: Datastream/Oriel Securities