Oriel's top 10 high-yielding equity investment trusts

Oriel's top 10 high-yielding equity investment trusts

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."

FundMarket cap (£million)Yield (%)
Discount
Blackrock Commodities Income1055.40.8
Henderson Far East Income3365.21 prem
European Assets Trust150
5.00.3
Shires Income72
5.03.9 prem
Henderson High Income1695.08.4 prem
Middlefield Canadian1124.81.3
Merchants Trust
5014.82 prem
British Assets3914.63.4
Blackrock World Mining8714.36.1
Blackrock Latin America1804.28.3
FTSE 100N/A3.5N/A
FTSE 250N/A2.5N/A
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
110416
Fund Data
Name1 Year (%)3 Years (%)5 Years (%)Rating
BR Latn Am IT21.00-8.2317.05N/A star(s)
BlackRock Commodities Inc IT13.211.5237.88N/A star(s)
BlackRock World Mining IT3.76-25.1821.75N/A star(s)
Henderson Far East Inc Ltd13.1131.6357.453 star(s)

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.