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Seven investment trusts you need to know about

Investment trusts are an increasingly popular way for investors to get access to expert fund managers

Let’s talk about risk

Past performance is not a guide to future performance. The value of all stock market investments can go down as well as up and you may not get back the full amount originally invested. If you feel you need specific investment advice that takes your individual circumstances fully into account, please talk to a financial adviser. The value of directly held property will reflect the valuations determined by professional independent valuers. Such valuations are the opinion of valuers at a particular time and are likely to be revised. Property and property-related assets can sometimes be illiquid. 

Investment trusts are an increasingly popular way for investors to get access to expert fund managers and the opportunity to earn income from your investment. Many have increased their dividends every year for decades, so it is a small wonder that record numbers of investment experts are using these listed funds to get access to good-value diversified portfolios.1

 
 

Recent figures from the Association of Investment Companies showed that investments in trusts by financial advisers and wealth managers hit a record level in the year to March, with property and equity income being two of the most popular sectors. It’s easy to get exposure to a broad range of asset types, geographies and sectors with these trusts.

And where the experts lead, individual investors follow. Here are seven appealing trusts for those who are interested in getting involved in the sector.

1) The BMO Managed Portfolio Trust

What it is: a trust that invests in a variety of other trusts held by other investment providers.

What it invests in: a board mix of holdings managed by different investment providers.

Who it might suit: those who want access to a diversified portfolio by buying one trust. The Trust offers a Growth and an Income portfolio to choose from depending on the investor’s needs.

2) BMO Capital and Income Investment Trust

What it is: a trust focusing on investing in UK companies.

What it invests in: large blue-chip UK companies with some investment in European companies.

Who it might suit: those looking for long-term capital and income growth with a belief in the strength of the UK and European economies.

3) BMO UK High Income Trust

What it is: a UK-based fund the focuses on income generation.

What it invests in: large and mid-sized UK companies with the aim of providing an attractive level of income together with the opportunity for capital growth.

Who it might suit: people who are more focused on income than growth.

4) European Assets Trust

What it is: a high-conviction trust that taps into small and medium-sized companies in Europe.

What it invests in: small to mid-sized companies across Europe that offer the potential for strong growth.

Who it might suit: those looking for a mix of growth and income with an appetite for long-term investing.

5) BMO Private Equity Trust

What it is: a trust that offers access to a diverse spread of private equity investments principally through exposure to specialist private equity funds and co-investments in individual companies.

What it invests in: a diverse spread of private equity investments through specialist private equity funds and co-investments in individual companies.

Who it might suit: those who already have a diverse portfolio of equities and bonds, and who want extra exposure to the private equity market.

6) F&C Commercial Property Trust

What it is: a trust investing in commercial property.

What it invests in: commercial property across the UK with a bias to central London primer property.

Who it might suit: investors who wish to gain exposure to prime UK commercial property or who want a more regular income, as dividends are paid monthly.

7) F&C UK Real Estate Investments

What it is: a trust that invests in prime commercial property.

What it invests in: primer UK commercial property

Who it might suit: investors who want to gain exposure to an asset class that is usually not accessible, via a readily realisable vehicle and who are looking for income.

 
 
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Let’s talk about risk

Past performance is not a guide to future performance. The value of all stock market investments can go down as well as up and you may not get back the full amount originally invested. If you feel you need specific investment advice that takes your individual circumstances fully into account, please talk to a financial adviser. The value of directly held property will reflect the valuations determined by professional independent valuers. Such valuations are the opinion of valuers at a particular time and are likely to be revised. Property and property-related assets can sometimes be illiquid. 

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