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10 investment trusts for your Isa 2020

Biotech trust Trump benefit may be shortlived

10 investment trusts for your Isa 2020

By Dave Baxter, Investors Chronicle, 3/6/2020

Features such as the use of gearing – debt – and the ability to pay income from
capital reserves give trusts advantages that could give your Isa an edge. They are
also, arguably, better suited to investing in illiquid assets such as property and private
equity so could be a good way to diversify your Isa. Below are 10 suggestions for investors
seeking growth, income and wealth preservation, plus a contrarian pick and something a
bit different.

GROWTH…

INCOME
Henderson Diversified Income Trust (HDIV)

James Carthew, head of investment company research at QuotedData, says:
“Henderson Diversified Income offers investors a 4.6 per cent yield from a portfolio
currently dominated by high-yield and investment-grade corporate bonds, but which has
the flexibility to invest across a wide variety of debt. High yield may sound risky, but many
investors forget that when companies run into trouble it’s equity investors that get hit
first. Their money serves as a protective cushion for debt investors…

WEALTH PRESERVATION
Capital Gearing Trust (CGT)

Mr Carthew says: “Capital Gearing Trust [is] the best performing trust since Peter Spiller
took on responsibility for it in April 1982 and, over more than a decade, the one
that best preserves capital when markets are falling. Its managers think that the returns
available from most asset classes are currently poor. They are concerned about the level of
debt that has built up in the global economy. They also think that inflation may eventually
creep back into the system as governments and central banks, fearful of another financial
crisis, throw money at staving off a recession – something the Chinese are doing
[following the coronavirus outbreak]…

CONTRARIAN…

DIVERSIFYING ASSETS…

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