The 16 highest yielding investment trusts with yields at or above 4 per cent

7th May 2014


Oriel Securities has issued an analyst’s note listing the 16 highest yielding investment trusts. The notes says: “With interest rates continuing at exceptionally low levels, many investors continue to seek higher yields. For those prepared to take equity risk, there are a number of investment trusts investing in equities with a yield in excess of 4.0%. In addition, the property, infrastructure and debt fund sectors also continue to offer attractive yields.

The firm notes that there are currently 16 trusts in the ‘high yielders’ list, which has increased from 10 trusts in August last year. It says the new entrants include Schroder Oriental Income, Murray International, Aberdeen Asian Income and Scottish American which made a return after dropping off the list in August.

Oriel says that in most cases this reflects falls in share prices and some dividend growth, resulting in higher dividend yields.

The list includes funds which primarily invest in listed equities with a historic yield of at least 4.0%, a significant premium to the FTSE All Share yield of 3.3%. Funds with multiple share structures and a market cap below £70m have been excluded.

Figure 1: Funds primarily investing in equities with a dividend yield above 4.0%
Fund Market Cap (£m) Yield (%) Discount (%)
Henderson Far East Income 329 5.7  3 prem.
BlackRock Commodities Income 114 5.2  3 prem.
European Assets Trust 199 5.2  0 prem.
Henderson High Income 187 4.8  5 prem.
Middlefield Canadian 114 4.7 4 disc.
 Shires Income 76 4.7  1 prem.
Merchants Trust 533 4.7  3 prem.
BlackRock World Mining 818 4.6 3 disc.
JPM Global Emerging Inc 302 4.5 2 prem.
British Assets 407 4.5 1 disc.
 Schroder Oriental 382 4.3 2 disc
 Murray International* 1,306 4.2  6 prem.
Aberdeen Asian Income Fund 372 4.1  1 prem.
Scottish American 332 4.1  6 prem.
Dunedin Income Growth 421 4.0 1 prem
BlackRock Latin America 176 4.0 8 disc.
 FTSE 100 NA 3.5 NA
FTSE 250 NA 2.5 NA

Includes: funds primarily investing in listed equities.

Excludes: funds with market capitalisations of less than £70m. Excludes funds with multiple share classes.

Discount/premiums based on estimated Fair value NAVs (ex-revenue) at close on 06/05/14.

NAV performance figures are based on diluted NAV at FV and are capital return only.

Source: Datastream


1 thought on “The 16 highest yielding investment trusts with yields at or above 4 per cent”

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