5 High Yielding Trusts Trading at a Discount

Equity investment trusts with yields higher than 4% are attractive for income investors in an ultra-low income environment. We reveal five of them trading at a discount

Karen Kwok 25 May, 2016 | 11:03AM

Income investors are feeling the pressure from low interest rates and macroeconomic uncertainty.

Government bond yields have been very weak and a number of previously high-yielding companies have announced dividend cuts this year across the mining, industrial metals, tobacco and food retail sectors.

While economic data supports a rate hike in the US in the summer, Markus Stadlmann, chief investment officer at Lloyds Private Bank thinks UK’s economy is not growing at sufficient speed for an interest rate rise to be likely this year.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aberdeen Asian Income Ord216.00 GBX3.35
BlackRock World Mining Trust plc446.00 GBX-1.11
European Assets Ord110.00 GBX2.33
Henderson Far East Income Ord318.00 GBX0.00
Merchants Trust Ord417.50 GBX-1.53

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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