Why investment trusts have received an income boost

A recent change in tax rules could lead investors to view closed-ended funds in a fresh light, writes Stephen Peters, senior investment trust analyst at Charles Stanley

Events since 2009 have shown investment trusts in a very favourable light. Almost all investment trusts that had income production as a primary goal were able to at least maintain income distributions to shareholders, as well as deliver very reasonable capital returns. Those with stronger balance sheets or who were able to move their portfolios correctly have hardly missed a beat. Perpetual Income and Growth’s dividend has grown since 2007 by almost 58% and Murray International by over 76%. For other trusts, however, life is less straightforward. While the UK Income and Growth secto...