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                                <title>2 growth and dividend stocks I&#8217;d pick to help me beat the State Pension</title>
                <link>https://www.twelfthmagpie.com/2018/10/22/2-growth-and-dividend-stocks-id-pick-to-help-me-beat-the-state-pension/</link>
                                <pubDate>Mon, 22 Oct 2018 14:37:16 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Alliance Trust]]></category>
		<category><![CDATA[QinetiQ Group]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=118212</guid>
                                    <description><![CDATA[<p>What's the best way to boost your pension savings, income stocks or growth stocks? Why choose when you can have both?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/10/22/2-growth-and-dividend-stocks-id-pick-to-help-me-beat-the-state-pension/">2 growth and dividend stocks I&#8217;d pick to help me beat the State Pension</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>The meagre UK State Pension will only go a small way towards keeping us fed, clothed and happy in our old age, so we need more in the shape of company pensions and private investments.</p>
<p>That raises the age-old question of whether to go for stocks that are likely to provide capital growth, or those which provide a steady dividend income stream. If you&#8217;re still investing and not yet drawing your pension, I really don&#8217;t think it makes any difference &#8212; your total return is what you get, whichever way.</p>
<h3>A growth trust</h3>
<p>I&#8217;m a big fan of <a href="https://www.twelfthmagpie.com/investing/2018/03/08/2-cheap-investment-trusts-for-a-starter-portfolio/">investment trusts</a> for providing retirement wealth, as they&#8217;re a way of offering pooled investments where there is no conflict of interest between retail customers and shareholders &#8212; because they are one and the same.</p>
<p><strong>Alliance Trust</strong> (LSE: ATST) is one I like, especially after a 60% share price rise over the past five years &#8212; a period in which the <strong>FTSE 100</strong> managed less than 25%. With dividends, the Footsie still handsomely beat a cash ISA, but the Alliance Trust performance is significantly better.</p>
<p>On Monday, it announced the sale of its Alliance Trust Savings (ATS) subsidiary to Interactive Investor for £40m. Its part of the trust&#8217;s plans to focus on its global equity portfolio, and, in the words of chairman Lord Smith of Kelvin: &#8220;<em>ATS customers, many of whom are Alliance Trust shareholders, will benefit from Interactive Investor’s similar low flat-fee structure, as well as its increased scale and focus.&#8221;</em></p>
<p>Alliance Trust has also been paying progressive dividends, keeping its annual rises ahead of inflation, and that&#8217;s something else that I like to see. Although yields are relatively low at around 2%, dividend growth in real-terms can make a significant contribution to your final retirement pot.</p>
<h3>Defensive dividends</h3>
<p>If you don&#8217;t need to spend your dividends right now, you can boost your total retirement capital by reinvesting them in more shares, and I see a tempting <a href="https://www.twelfthmagpie.com/investing/2018/08/02/why-id-shun-the-rolls-royce-share-price-and-buy-this-ftse-250-stock-instead/">dividend prospect</a> in <strong>QinetiQ Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-qq/">LSE: QQ</a>).</p>
<p>The defence and security specialist has been making some canny acquisitions of late, including the takeover of E.I.S. Aircraft Operations which completed earlier this month. E.I.S. provides airborne training services, and it looks like a good fit for the company to me.</p>
<p>The latest buy, announced Monday, is the acquisition of an 85% stake in Inzpire Group Limited, with an agreement for the remaining 15% after two years.</p>
<p>Inzpire also appears to fit in nicely with QinetiQ&#8217;s portfolio of services, with QinetiQ describing the company as &#8220;<em>a leading provider of operational training and mission systems for military customers in the UK and internationally</em>.&#8221;</p>
<h3>Solid returns</h3>
<p>The defence business has been in a bit of a squeeze in recent years, but it&#8217;s coming out of it, and QinetiQ has been managing to keep its dividend growing well ahead of inflation. In the four years from March 2014 to 2018, the dividend has been lifted by 37%, from 4.6p per share to 6.3p &#8212; and forecasts suggest a further 9% over the next two years.</p>
<p>And over the past five years, the share price has put on 38% (even if a bit erratically), providing a tasty overall return &#8212; especially for those future pensioners who bought new shares with their dividend cash.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/10/22/2-growth-and-dividend-stocks-id-pick-to-help-me-beat-the-state-pension/">2 growth and dividend stocks I&#8217;d pick to help me beat the State Pension</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em><a href="https://boards.fool.com/profile/TMFBoing/info.aspx">Alan Oscroft</a> has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>2 cheap investment trusts for a starter portfolio</title>
                <link>https://www.twelfthmagpie.com/2018/03/08/2-cheap-investment-trusts-for-a-starter-portfolio/</link>
                                <pubDate>Thu, 08 Mar 2018 11:30:17 +0000</pubDate>
                <dc:creator><![CDATA[Peter Stephens]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Alliance Trust]]></category>
		<category><![CDATA[Mercantile Investment Trust]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=110276</guid>
                                    <description><![CDATA[<p>These two investment trusts could offer high returns in the long run.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/03/08/2-cheap-investment-trusts-for-a-starter-portfolio/">2 cheap investment trusts for a starter portfolio</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>With the FTSE 100 having risen significantly in recent years, many new investors may be unsure whether now is a good time to buy shares. After all, buying at a low price and selling at a higher one is the aim of investing. And with reduced margins of safety on offer following the bull market since the financial crisis, opportunities to profit may be more limited.</p>
<p>However, a number of investment trusts continue to trade at a discount to their net asset values. This could indicate that they offer good value for money. And since they offer a high level of diversification, they could prove to be worthwhile buys for the long run. Here are two trusts that could be worth a closer look.</p>
<h3><strong>Impressive performance</strong></h3>
<p>Reporting on Thursday was internationally-focused business <strong>Alliance Trust</strong> (LSE: ATST). The company experienced a year of significant change during 2017. Notably, it changed investment manager and implemented a new investment approach. This provides those putting their cash into the company with exposure to a number of global equity managers who are investing in high-conviction ideas.</p>
<p>The trust delivered a total shareholder return of 19.2% during 2017. This compares to the MSCI ACWI total return of 13.8% during the same time period. This is a positive result at a time when global stock markets experienced a bull market. Since the company has exposure to a variety of shares in a number of different regions internationally, it could be set to benefit from further improvements in the outlook for the global economy.</p>
<p>With Alliance Trust trading at a discount of around 6% to its net asset value, it appears to offer <a href="https://www.twelfthmagpie.com/investing/2018/02/27/got-1000-to-invest-these-2-soaring-investment-trusts-could-help-make-you-wealthy/">good value for money</a>. Since it has a significant amount of diversification and a <a href="https://www.twelfthmagpie.com/investing/2018/02/25/2-cheap-investment-trusts-with-45-years-of-consecutive-dividend-increases/">good track record of growth</a>, it could be a sound purchase for a starter portfolio.</p>
<h3><strong>Growth potential</strong></h3>
<p>Also offering long-term growth potential is the <strong>Mercantile Investment Trust</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-mrc/">LSE: MRC</a>). The company is invested solely in UK equities, with its major holdings having a bias towards mid-caps. Historically, mid-caps have outperformed larger companies and are often seen as more volatile and risky, but with higher return potential.</p>
<p>Certainly, investing in FTSE 250 stocks prior to Brexit could be seen as a risky move. In many cases, they are focused on the UK economy and so a further decline in the forecast GDP growth rate could lead to difficult trading conditions for them.</p>
<p>However, with the Mercantile Investment Trust having delivered total returns of 92% in the last five years versus a return of 51% for the UK all companies sector, it has a solid track record of outperformance. Furthermore, since it trades at a discount to net asset value of 9%, it appears to offer good value for money.</p>
<p>While the prospects for UK equities could be uncertain, the reality is that their risk/reward ratios could be enticing due to investors having priced-in potential risks. As such, the trust could be a worthwhile purchase for a starter portfolio.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/03/08/2-cheap-investment-trusts-for-a-starter-portfolio/">2 cheap investment trusts for a starter portfolio</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Got £1,000 to invest? These 2 soaring investment trusts could help make you wealthy</title>
                <link>https://www.twelfthmagpie.com/2018/02/27/got-1000-to-invest-these-2-soaring-investment-trusts-could-help-make-you-wealthy/</link>
                                <pubDate>Tue, 27 Feb 2018 13:55:36 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Alliance Trust]]></category>
		<category><![CDATA[Pantheon International]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=109859</guid>
                                    <description><![CDATA[<p>Here are two investment trusts that could be great long-term investments, especially with the markets down.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/02/27/got-1000-to-invest-these-2-soaring-investment-trusts-could-help-make-you-wealthy/">Got £1,000 to invest? These 2 soaring investment trusts could help make you wealthy</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>In the fund management business, there can be a potential conflict of interest between the owners of the management companies and their customers whose cash is being invested. And while competition helps keep charges down, a firm&#8217;s managers&#8217; first responsibility is to shareholders.</p>
<p>Investment trusts provide the perfect solution to this dilemma, in that a trust&#8217;s investors and shareholders are one and the same. Initial capital is provided at IPO time, and the only way to invest is to buy shares.</p>
<h3>Global equity</h3>
<p>I&#8217;ve been examining <strong>Pantheon International</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-pin/">LSE: PIN</a>), which released first-half figures today. Pantheon is a little unusual in that it invests in private equity funds with a <a href="https://www.twelfthmagpie.com/investing/2017/09/25/can-these-top-performing-funds-help-you-to-achieve-financial-independence/">global reach</a>, which makes it something of a fund-of-funds vehicle.</p>
<p>I&#8217;d usually shun such beasts with their dual layers of management costs, but I quite like Pantheon for several reasons. As an investment trust it avoids that top-level conflict of interest, and it gives small investors access to private equity, from which they would otherwise be excluded. But the thing I most like is its impressive performance. </p>
<p>The period saw a net outflow of cash (including distributions) of £137m from the company&#8217;s portfolio, and net assets fell to £1,217m from £1,388m. But there were £196m in new investment commitments made in the six months, and on a per-share basis I think things look good.</p>
<p>Net asset value (NAV) per share, a key measure for investment trusts, rose by 2.5% from 2,189p to 2,245p. The share price did grow ahead of that over the same period, by 4.2% from 1,793p to 1,869p, and that narrowed the discount &#8212; but it still stood at 16.8%, which looks attractive to me.</p>
<p>The share price has doubled in five years, to 1,860p at the time of writing, while the <strong>FTSE All-Share</strong> index has gained just 20%, so we&#8217;re looking at an outperformer here.</p>
<h3>50-year champion</h3>
<p><strong>Alliance Trust</strong> (LSE: ATST) also has a global outlook, but with a more conventional approach of investing in large international companies rather than private equity. And it&#8217;s been a byword for long-term performance for decades.</p>
<p>Alliance Trust has lifted its annual dividend for <a href="https://www.twelfthmagpie.com/investing/2018/02/25/2-cheap-investment-trusts-with-45-years-of-consecutive-dividend-increases/">50 consecutive years</a>, a record that few can match. Yields have been relatively low at around 2%, but investors have enjoyed solid share price growth too. This time we&#8217;re looking at 71% over five years, which again trounces the FTSE All-Share, and an outperformance that stretches back further.</p>
<p>At the halfway stage at 30 June 2017, NAV per share stood at 742.2p with the shares at 700p, representing a 5.7% discount. That&#8217;s narrow by investment trust standards and suggests that investors see little risk in Alliance Trust, compared to the smaller and riskier Pantheon with its discount close to 17%, though it has also been affected by Alliance&#8217;s share buyback programme.</p>
<h3>Attractive returns</h3>
<p>First-half total shareholder returns came in at 10.8%, with the firm&#8217;s equity portfolio beating its benchmark by 4.2%. That comes at a time of transition to a new investment approach, which essentially consists of adopting a multi-manager approach.</p>
<p>That can result in higher charges, but the transition was apparently at a much lower cost than originally anticipated, and the company is targeting charges of no more than 0.65%.</p>
<p>How well this new approach continues to beat the indices remains to be seen, but right now I&#8217;m seeing another long-term buy.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/02/27/got-1000-to-invest-these-2-soaring-investment-trusts-could-help-make-you-wealthy/">Got £1,000 to invest? These 2 soaring investment trusts could help make you wealthy</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>2 investment trusts for beginner investors to consider</title>
                <link>https://www.twelfthmagpie.com/2018/01/31/2-investment-trusts-for-beginner-investors-to-consider/</link>
                                <pubDate>Wed, 31 Jan 2018 11:00:20 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Alliance Trust]]></category>
		<category><![CDATA[The Diverse Income Trust]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=108468</guid>
                                    <description><![CDATA[<p>These investment trusts will do all the hard work so you don't have to. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/01/31/2-investment-trusts-for-beginner-investors-to-consider/">2 investment trusts for beginner investors to consider</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Investment trusts are the <a href="https://www.twelfthmagpie.com/investing/2018/01/26/investing-your-first-1000-here-are-two-investment-trusts-to-consider/">novice investor’s best friend</a>. These companies have been around in one form or another for more than a century and many trusts in existence today have several decades of history behind them.</p>
<p>Put simply, investment trusts are long-term-focused diversified instruments, which makes them the perfect asset for both beginners and experienced investors alike.</p>
<p>One example is the <b>Diverse Income Trust</b> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-divi/">LSE: DIVI</a>) from fund manager <b>Miton</b>. Diverse Income’s goal is to achieve a steady level of income for its investors as well as booking capital growth over the long term. Even though it&#8217;s only a few years old (inception 2011), the company has so far managed to beat its benchmark substantially, returning a cumulative 160% since launch, compared to its UK Equity Income Sector Benchmark return of 98.9% over the same period.</p>
<h3>Income portfolio</h3>
<p>Diverse Income has been able to achieve this return by investing in a broad selection of UK mid-caps that have both bright growth prospects and sustainable dividends. Currently, the top holdings include logistics company <b>Stobart Group</b>, insurance business <b>Charles Taylor</b>, <b>IG Design Group</b> and <b>Zotefoams</b>.</p>
<p>At the time of writing the trust supports a dividend yield of 3.3% and trades at a slight discount to its net asset value of 0.6% (last recorded net asset value is 103.9p). The one downside of this investment is the trust’s slightly higher than average ongoing management charge of 1.15%, although I believe that this is a fair charge considering the outperformance it has generated over the past five years.</p>
<h3>Growth investor </h3>
<p>Another investment trust that might be a great addition to a beginner investors’ portfolio is the <b>Artemis Alpha Trust</b> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-ats/">LSE: ATS</a>).</p>
<p>I believe this one is an excellent buy as it offers exposure to growth stocks as well as <a href="https://www.twelfthmagpie.com/investing/2018/01/16/2-investment-trusts-that-should-line-your-pockets/">international equities</a> and unquoted businesses. According to the trust&#8217;s most recent half-year report, at the end of October, 25% of the portfolio was invested in unquoted companies while only 87% of the public quoted equity portfolio was invested in the UK.</p>
<p>Is that a good thing? Unfortunately, Artemis Alpha’s high-risk approach hasn&#8217;t paid off over the past five years. During this period the fund has underperformed its benchmark by around 50% excluding dividends. Thanks to this lacklustre performance, the shares currently trade at a discount to net asset value of 19.6%. On a net asset value basis, the trust has only underperformed by 35% excluding dividends.</p>
<p>Nevertheless, despite this poor short-term performance, I believe that over the long run, Artemis Alpha’s international diversification coupled with its focus on high growth businesses will produce returns for investors. Total annual fees are only 0.9%, and in addition, the trust supports a dividend yield of 1.4%. </p>
<p>For beginner investors who want exposure to high-growth small-caps, but don&#8217;t know where to start, Artemis Alpha could be a great buy.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/01/31/2-investment-trusts-for-beginner-investors-to-consider/">2 investment trusts for beginner investors to consider</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Rupert Hargreaves owns shares in Miton Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Could these investment trusts help to you achieve financial independence?</title>
                <link>https://www.twelfthmagpie.com/2017/08/14/could-these-investment-trusts-help-to-you-achieve-financial-independence/</link>
                                <pubDate>Mon, 14 Aug 2017 10:01:00 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Alliance Trust]]></category>
		<category><![CDATA[RIT Capital Partners]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=101064</guid>
                                    <description><![CDATA[<p>These trusts should continue to pump out returns for investors for many years to come. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/08/14/could-these-investment-trusts-help-to-you-achieve-financial-independence/">Could these investment trusts help to you achieve financial independence?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Investment trusts are one of the oldest investment vehicles. For more than a hundred years investors have been using these companies to pool, protect and grow their wealth. </p>
<p><b>RIT Capital Partners</b> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-rcp/">LSE: RCP</a>) is one of the most successful investment trusts there is. Chaired by Lord Rothschild, since 1988 the company has produced an annual return of 12.9% for investors, turning £1,000 into £30,000. </p>
<p>Since 1990, it has returned 470%, eclipsing the FTSE 100&#8217;s return of 19.5% over the same period excluding dividends. </p>
<h3>Finding value of the market </h3>
<p>Today RIT reported its results for the first half of the year, which showed yet another strong investment performance. Net asset value per share increased to 1,784p with a total return of 4%, from 1,730p, while pre-tax profit rose to £111.1m from £89.6m.</p>
<p>One of the greatest benefits of investing in RIT is that the firm is able to put its money into unquoted companies, offering a level of diversification not available to most private investors. Indeed, today the company reported that its net quoted equity exposure averaged 43% during the first half and management has been looking for more private market opportunities to reduce exposure to expensive public markets. To that end, RIT has invested in US-based Social Capital LP, which it called one of &#8220;<em>Silicon Valley&#8217;s leading technology investment firms</em>&#8220;. </p>
<p>Overall, the investment trust is directing its exposure to &#8220;<em>investments which will benefit from the impact of new technologies, and Far Eastern markets, influenced by the growing demand from Asian consumers,</em>&#8221; according to Lord Rothschild. </p>
<h3>Not cheap </h3>
<p>Unfortuntately, because RIT has generated such impressive returns for investors during the past decade, shares in the trust are not cheap. At the time of writing the shares are changing hands at 1,941p, a premium of 8.8% to net asset value. After increasing its interim dividend payout by 3.2% today, RIT is on track to pay out 32p per share to investors for the full-year, giving a dividend yield of 1.6%. </p>
<p>Still, even though it is trading at a premium to net asset value, if the firm can continue to produce double-digit returns for investors every year, this is one company that you can rely on to increase your wealth. </p>
<h3>Undervalued </h3>
<p><b>Alliance Trust</b> (LSE: ATST) might be a better choice than RIT if you&#8217;re looking for a trust that&#8217;s trading at a discount. It has struggled over the past few years, which has resulted in investors avoiding the firm, but a recent shake-up has put an end to the poor investment performance. </p>
<p>Alliance Trust reported a net asset value total return of 12.4% over the six months to June 30. This compares with a 6.4% return from the MSCI All Country World Index over the same period. The better performance, coupled with the trust&#8217;s restructuring has sent its shares higher by 22% excluding dividends over the past year, and there could be further gains ahead. </p>
<p>Based on the most recent figures, Alliance&#8217;s net asset value per share is just under 749p, 4.6% above the current price of 417p. Management has instigated a stock buyback to try and reduce this discount. The shares support a dividend yield of around 1.8%. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/08/14/could-these-investment-trusts-help-to-you-achieve-financial-independence/">Could these investment trusts help to you achieve financial independence?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em><a href="https://my.fool.com/profile/RupertHargreav/info.aspx">Rupert Hargreaves</a> has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>3 investment trusts boasting 50 consecutive years of dividend growth</title>
                <link>https://www.twelfthmagpie.com/2017/03/16/3-investment-trusts-boasting-50-consecutive-years-of-dividend-growth/</link>
                                <pubDate>Thu, 16 Mar 2017 14:24:23 +0000</pubDate>
                <dc:creator><![CDATA[Harvey Jones]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Alliance Trust]]></category>
		<category><![CDATA[City of London Investment Trust]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=94773</guid>
                                    <description><![CDATA[<p>These three investment trusts have increased their dividend payouts year after year for the last half-century, says Harvey Jones.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/03/16/3-investment-trusts-boasting-50-consecutive-years-of-dividend-growth/">3 investment trusts boasting 50 consecutive years of dividend growth</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Everybody loves a juicy dividend, and with good reason. Over the long run, they account for around three-quarters of your total returns, provided you reinvest them for growth.</p>
<p>The real beauty of dividend income is that most companies aim to increase their payouts over time, compounding the benefits and helping you outstrip inflation. The following three investment trusts have been doing just that for an incredible 50 consecutive years. Here&#8217;s to the next half century&#8230;</p>
<h3>City of London Investment Trust </h3>
<p>The <strong>City of London Investment Trust</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cty/">LSE: CTY</a>) offers investors long-term income and capital growth primarily by investing in companies listed on the London Stock Exchange. It has done both of these things, returning 75% over the last five years and currently yielding 3.88%, according to figures from Trustnet.com. By comparison, the FTSE 100 has grown 29% over that period, and currently yields 3.69%.</p>
<p>This isn&#8217;t a shoot-the-lights-out fund, it is second quartile over one and three years, and has only just beaten its benchmark UK equity income sector. But its record of long-term dividend growth is impressive, and manager Job Curtis pins this on a combination of investing in good companies and its investment trust structure, because it can raid reserves in the good years to fund payouts in tougher times. Curtis has done this in seven of the last 25 years. He says the UK dividend outlook is promising, boosted by sterling&#8217;s fall over the last nine months.</p>
<h3>Bankers Investment Trust</h3>
<p>The <strong>Bankers Investment Trust</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bnkr/">LSE: BNKR</a>) has also delivered a half ton of consecutive annual dividend increases. It invests in a diversified international portfolio with the aim of delivering capital growth in excess of the FTSE All-Share Index, and dividend growth exceeding the retail prices index. Manager Alex Crooke says its growth record actually stretches all the way back to the Second World War with a blip after capital gains tax was introduced in 1966, which prompted companies to make a bumper payout in 1965.</p>
<p>Crooke says the global dividend outlook is mixed because many US and European companies now pay a relatively high percentage of their earnings as dividends. But he still anticipates growth in the range of 3% to 5%, or more if the pound continues to fall against overseas currencies. Over five years, the fund has grown 105%, against 83% on its benchmark global index. The yield is relatively low at 2.25%, but that is hardly surprising given that the trust has leapt an impressive 37% in the last year.</p>
<h3><strong>Alliance Trust</strong></h3>
<p>The £2.75bn investment trust giant <strong>Alliance Trust</strong> (LSE: ATST) has a history going back all the way to 1888 and the last 50 years been a dream for dividend seekers, with growth every step of the way. Its current yield of 1.82% may look low, but again, that is partly a consequence of stellar recent growth, with the trust up an incredible 46% over the past 12 months. Over five years, it has returned 110%.</p>
<p>It has done this by investing in a global spread of stocks, including big names such as Walt Disney, Pfizer, Visa, Amgen, Blackstone and Microsoft. It is also first quartile over one and three years. Whether you want growth today or income tomorrow, you could do worse than putting your trust in these three dividend heroes.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/03/16/3-investment-trusts-boasting-50-consecutive-years-of-dividend-growth/">3 investment trusts boasting 50 consecutive years of dividend growth</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/08/878-years-of-dividend-increases-so-are-these-21-amazing-investment-trusts-good-for-passive-income-7-45/">236 years of dividend increases! So are these 4 amazing investment trusts good for passive income?</a></li></ul><p><em>Harvey Jones has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Should you buy HICL Infrastructure Company Limited after 10.4% shareholder returns?</title>
                <link>https://www.twelfthmagpie.com/2016/11/16/should-you-buy-hicl-infrastructure-company-limited-after-10-4-shareholder-returns/</link>
                                <pubDate>Wed, 16 Nov 2016 13:36:13 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Alliance Trust]]></category>
		<category><![CDATA[HICL Infrastructure]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=89260</guid>
                                    <description><![CDATA[<p>HICL Infrastructure Company Limited (LON: HICL) delivers top interim results.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/11/16/should-you-buy-hicl-infrastructure-company-limited-after-10-4-shareholder-returns/">Should you buy HICL Infrastructure Company Limited after 10.4% shareholder returns?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>I often think the worst thing you can do with your investment cash is trust it to a fund manager, but that doesn&#8217;t mean I turn my nose up at all the professionals. Here&#8217;s a couple that I think are certainly worth a closer look:</p>
<h3>Cracking returns</h3>
<p><strong>HICL Infrastructure</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-hicl/">LSE: HICL</a>) this morning reported an annualised total shareholder return for the six months to 30 September of 10.4%, based on dividends paid and an increase in the firm&#8217;s net asset value (NAV).</p>
<p>HICL is an investment firm that puts its shareholders cash into public infrastructure, and so NAV is a good valuation measure &#8212; with the cavaat that asset values are sometimes subjective and can be volatile.</p>
<p>NAV per share came in at 145.7p, for a rise of 2.5% from March&#8217;s figure of 142.2p, and dividends in the period of 3.82p per share support the company&#8217;s full-year target of 7.65p &#8212; which would provide a yield of 4.6% on today&#8217;s share price.</p>
<p>A return of 10.4% is very impressive, and if it could be repeated year after year, it would be enough to double your original investment in just seven years &#8212; but be aware that it&#8217;s a stretching target.</p>
<p>HICL told us its investment portfolio value was up 7.9% in the six months, to £2,189.9m, and there appears to be a strong pipeline of investments in the planning stages. Total income rose by 19.2%, with pre-tax profit up 19.1%, and dividends declared so far have been lifted by 2.7%.</p>
<p>The share price didn&#8217;t move a lot today, and at 168p it&#8217;s ahead of the firm&#8217;s NAV per share &#8212; but not by much, and the excess seems to me to represent a fair premium for HICL&#8217;s investment expertise.</p>
<p>In all, I see strong overall returns over the next few years, and coupled with a progressive dividend policy I like what I see here.</p>
<h3>Trust in trusts</h3>
<p>I&#8217;ve always been a fan of investment trusts, which provide pooled investment vehicles whose profits belong solely to shareholders &#8212; so there&#8217;s no clash of interest between company owners and customers.</p>
<p>I&#8217;ve been looking at <strong>Alliance Trust</strong> (LSE: ATST), whose shares are up 50% over the past five year, at 584p. The venerable investment trust puts its shareholders&#8217; cash mostly into large global companies and aims at long-term growth. And it&#8217;s doing well at it.</p>
<p>By the halfway stage at 30 June, Alliance&#8217;s NAV per share had reached 591.4p &#8212; up from 561.1p in December 2015, and 545.9p the previous June.</p>
<p>Investment returns over the summer have been erratic due to EU referendum upheaval, and Alliance predicted &#8220;<em>at least a mild recession as investment and consumption freeze up in the midst of so much uncertainty</em>&#8220;, but the firm stressed its reliance on &#8220;<em>a defensive portfolio that is invested in companies that are growing through structural change</em>&#8220;, which should be less vulnerable to cyclical change and short-term political machinations.</p>
<p>With the shares price at 584p today, we&#8217;re looking at a discount to NAV of less than 1.5%, which has narrowed considerable since the interim stage. In a sector in which discounts are common, that suggests sentiment has been improving in recent months, and Alliance Trust has probably attracted some of the cash fleeing the Brexit panic.</p>
<p>Dividend yields are low at around 2%, but with Alliance chasing growth that&#8217;s fine &#8212; and the shares look attractive to me.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2016/11/16/should-you-buy-hicl-infrastructure-company-limited-after-10-4-shareholder-returns/">Should you buy HICL Infrastructure Company Limited after 10.4% shareholder returns?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>5 Investment Trusts Trading At Discounts Of Over 10%: Alliance Trust plc, Mercantile Investment Trust plc, Templeton Emerging Markets Inv Trust plc, Caledonia Investments plc &#038; Fidelity China Special Situations plc</title>
                <link>https://www.twelfthmagpie.com/2015/08/05/5-investment-trusts-trading-at-discounts-of-over-10-alliance-trust-plc-mercantile-investment-trust-plc-templeton-emerging-markets-inv-trust-plc-caledonia-investments-plc-fidelity-china-special-s/</link>
                                <pubDate>Wed, 05 Aug 2015 15:16:09 +0000</pubDate>
                <dc:creator><![CDATA[Jack Tang]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Alliance Trust]]></category>
		<category><![CDATA[Caledonia Investments]]></category>
		<category><![CDATA[Fidelity China Special Situations]]></category>
		<category><![CDATA[investment trusts]]></category>
		<category><![CDATA[Mercantile Investment Trust]]></category>
		<category><![CDATA[Templeton Emerging Markets]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=68171</guid>
                                    <description><![CDATA[<p>Alliance Trust plc (LON:ATST), Mercantile Investment Trust plc (LON:MRC), Templeton Emerging Markets Inv Trust plc (LON:TEM), Caledonia Investments plc (LON:CLDN) and Fidelity China Special Situations plc (LON:FCSS) are trading at 10%+ discounts to their net asset values. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/08/05/5-investment-trusts-trading-at-discounts-of-over-10-alliance-trust-plc-mercantile-investment-trust-plc-templeton-emerging-markets-inv-trust-plc-caledonia-investments-plc-fidelity-china-special-s/">5 Investment Trusts Trading At Discounts Of Over 10%: Alliance Trust plc, Mercantile Investment Trust plc, Templeton Emerging Markets Inv Trust plc, Caledonia Investments plc &#038; Fidelity China Special Situations plc</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Investment trusts are similar to unit trust and OEIC funds in many ways. They are all collective investment funds, where investors pool their money to invest in a wide range of assets. An expert fund manager manages these assets, and in turn receives a management fee. The main difference between them is that investment trusts are structured like ordinary companies. This means that they usually have a fixed number of shares in issue at any one time and can borrow money to make additional investments.</p>
<p>As investment trusts are traded like shares, their shares can trade at a premium or discount to the value of their assets. Demand and supply factors determine the value of the shares in investment trusts, and this usually means trusts that have been underperforming the sector usually trade at a discount to its net asset value (NAV). On the other hand, a strongly performing trust is likely to trade at a premium to its NAV.</p>
<p>Buying investment trusts that are trading at a discount to their NAV can be regarded as a bargain, as you are purchasing a collection of assets for less than the sum of its parts. But there is no guarantee that the discount will close and a sizeable discount could be regarded as a warning sign for poor management, excessive fees or lacklustre investment performances.</p>
<p>We will now look at whether it would be wise to invest in these five heavily discounted investment trusts.</p>
<table border="2" width="538">
<tbody>
<tr>
<td> </td>
<td>Share price (p)</td>
<td>NAV (p)</td>
<td>premium/discount</td>
</tr>
<tr>
<td><strong>Alliance Trust plc</strong></td>
<td> 495.3</td>
<td> 567.4</td>
<td> -12.7%</td>
</tr>
<tr>
<td><strong>Mercantile Investment Trust plc</strong></td>
<td> 1712.0</td>
<td> 1928.5</td>
<td> -11.2% </td>
</tr>
<tr>
<td><strong>Templeton Emerging Markets plc</strong></td>
<td> 455.7</td>
<td> 519.4</td>
<td> -12.3%</td>
</tr>
<tr>
<td><strong>Caledonia Investments plc</strong></td>
<td> 2341.0</td>
<td> 2840.0</td>
<td> -17.6%</td>
</tr>
<tr>
<td><strong>Fidelity China Special Situations plc</strong></td>
<td> 134.5</td>
<td> 162.3</td>
<td> -17.1%</td>
</tr>
</tbody>
</table>
<p><b>Alliance Trust</b> (LSE: ATST), the globally-focused investment trust, has been trading at a discount of more than 5% for a number of years now. With an investment return of just 1.4% in the first half of 2015, its recent performance has been underperforming its peers.</p>
<p>But management seems to be finally getting their act together. It has engaged with an activist hedge fund Elliott Advisors to tackle its bloated cost structure and improve its performance by increasing its share of equity investments.</p>
<p>The trust could take action to shrink its discount, by buying back shares in itself on the open market to reduce the discount in its shares. It did just that in 2011, when it bought back some £350 million worth of its own shares. With pressure from an activist investor, a return to share buybacks is quite likely.</p>
<p><b>Mercantile Investment Trust </b>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-mrc/">LSE: MRC</a>) is a UK-focused equity investment trust that has a long history of outperforming the sector. In the past year alone, the investment trust delivered a 20.9% after fees return on its NAV, which compares favourably to the peer average of 17.0% and the FTSE All Share total return of 5.0%. With an ongoing annual charge of just 0.50%, its 11.2% discount seems unjustified.</p>
<p><b>Templeton Emerging Markets Inv</b><b>estment</b><b> Trust</b> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-tem/">LSE: TEM</a>) is one of the most popular emerging market investment trusts on the market, with assets under management totalling £1.63 billion. Unfortunately, its heavy exposure to China and Brazil has meant its investment performance has lagged its peer average in recent years.</p>
<p><b>Caledonia Investments</b> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cldn/">LSE: CLDN</a>) has a significant proportion of its assets in private unquoted companies through direct holdings and private equity funds. Because of its heavy exposures to the UK, the rest of Europe and Asia, its investment performance has lagged the sector average. On top of this, it has a very high ongoing annual management charge of 2.61%.</p>
<p><b>Fidelity China Special Situations </b>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-fcss/">LSE: FCSS</a>) trades at a very substantial discount to its NAV, as the recent volatility in the Chinese equity markets and sell-off in emerging markets has reduced demand for the trust. As volatility settles down in China&#8217;s equity markets, the trust&#8217;s discount could narrow to its historical average of around 10%.</p>
<h3 class="western">More information?</h3>
<p>The Association of Investment Companies (AIC) publishes a wide range of data about investment trusts, including the premium/discount that they trade at, the amount of gearing used and their ongoing charges. <a href="https://www.theaic.co.uk/aic/find-compare-investment-companies">Click here</a> to see its latest published statistics.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2015/08/05/5-investment-trusts-trading-at-discounts-of-over-10-alliance-trust-plc-mercantile-investment-trust-plc-templeton-emerging-markets-inv-trust-plc-caledonia-investments-plc-fidelity-china-special-s/">5 Investment Trusts Trading At Discounts Of Over 10%: Alliance Trust plc, Mercantile Investment Trust plc, Templeton Emerging Markets Inv Trust plc, Caledonia Investments plc &#038; Fidelity China Special Situations plc</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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