Best Investment Trusts for Income

Investment trusts have become a reliable way of investing huge amounts of money, commercial property, and infrastructure for short-term dividends or capital growth. Stocks and bonds rise and fall with the global economy, while investment trusts are safer than other investment options. This is because they are not liable to yield returns in the same fiscal year.

Investment trusts can hold up to 15% of the income and capital gains so that the company can continue to pay its investors when bad times come. Choosing an investment trust for your property or savings, however, is an expert’s job. It depends on your priorities too, for instance, whether you need periodic dividends and interest or capital growth over long-term investing.

In this article, we will be discussing some of the best Investment trusts for income in the UK. Some of these offer growth returns, and some provide stable dividend income. Others provide a balance between the two by diversifying their portfolios.

Income TrustOngoing ChargeDividend YieldTotal AssetsMarket CapitalizationShares in IssueDiscount Percent
Henderson Far East Income

 

1.05%8.1%£480 M£ 443.09 M151 M1.90%
Aberdeen Standard Equity 1.01%6.4%£172 M£ 4700 M48 M-4.71%
Murray International

 

0.84%4.48%£1817M£1562 M125 M-2.26%
Chelverton UK Dividend Trust

 

2.12%

 

5.88%£57m

 

£35m

 

20.85 M-6.72%

 

City of London

 

0.74% 4.81%£1,948M 

£1,850M

 

457.12M

 

 

2.48%

 

Lowland

 

 

No

 

5.02% 

£405M

 

£326M 

270.19M

 

 

-8.30%

 

JPMorgan Japan Small Cap Growth & Inc

 

1.02% 

6.34%

 

 

£217M

 

£178M54.51 M 

-7.68%

 

North American Income

 

1.16%3.55% 

£488M

 

 

£417M

 

 

140.23 M

 

 

-6.67%

 

BMO Managed Portfolio Income

 

 

2.80%

 

5.16% 

£69M

 

£63M 

87.26 M

 

1.97%
BlackRock World Mining1.06% 

6.55%

 

 

£1,428M

 

 

£1,276M

 

 

187.87 M

 

 

1.37%

 

Disclaimer: These stats are subject to change every hour. These numbers are, however, here to provide you with an idea of where a particular trust stands with its ongoing charges, market cap, total assets, and the number of shares in issue.

Making a deal

Below is an overview and a performance track based on the Net Asset Value (NAV) of our best investment trusts for income.

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Henderson Far East Income

Henderson East Income Trust belongs to the Asia Pacific Income sector. The company makes its dividend payments in February, May, August, and November. Mainly, it trades on the LSE and is known as the ‘truest’ income fund in its sector as it offers the highest dividend yield among its peers.

Cumulative Performance1 month1 year3 years5 years
NAV-1.71-0.614.1813.47

 

Aberdeen Standard Equity Trust Inc Trust

Aberdeen Standard Equity is an open-ended investment company with a large market cap. Morningstar categorizes this fund as a global large-cap growth equity fund, which belongs to the AIC sector of IT UK Equity Income.

Cumulative Performance1 month1 year3 years5 years
NAV0.7-1.63.21.7

Murray International

Cumulative Performance1 month1 year3 years5 years
NAV-0.910.927.331.8

Murray International Income Trust has a record of maintaining a dividend yield and capital returns rate that stays ahead of inflation. The company invests in global equities for long-term capital growth and a sustainable dividend income. Murray International is also a part of the FTSE 250 Index. 

Blackrock World Mining Trust

Cumulative Performance1 month1 year3 years5 years
NAV-4.228.3330.9048.86

Blackrock Mining Income Trust provides a diversified portfolio in metal and mining securities. The trust’s investment policy also includes royalties derived from metals and mining businesses.

This mining sector focuses on companies benefiting from digital transformation. Blackrock aims to provide a diversified portfolio concerning both income and growth that benefit as the global economy changes.

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City of London

Cumulative Performance1 month1 year3 years5 years
NAV1.1913.7020.90

 

22.35

The City of London Investment Trust is a closed-ended investment company that is renowned for its record annual dividend increases since 1966. The trust invests in large, multinational companies and UK equities listed on the LSE.

Lowland Investment Trust Plc

Cumulative Performance1 month1 year3 years5 years
NAV0.74-0.5111.804.61

Lowland pays its dividends quarterly, and since 2013, the company has only increased its annual dividend percentage. The company allocates half of its portfolio to the FTSE 100 companies, and the rest consists of small and medium-sized companies.

Lowland Investment Company Plc is a UK equity income trust that provides a diversified medium- to long-term dividend income plan. It has been rated 3 stars on Morningstar.

JPMorgan Japan Small Cap Growth & Inc

Cumulative Performance1 month1 year3 years5 years
NAV-1.1-32.2-5.37.7

JPMorgan Small Cap Growth Company invests in small-sized businesses and companies. This increases the risk profile of the portfolio. But since the companies are chosen for their good governance and growth potential in both local and global economies, the profit margin is greater.

This income trust, hence, is more growth-focused and reinvests the profits rather than giving out dividends.

JPMorgan Claverhouse

Cumulative Performance1 month1 year3 years5 years
NAV-0.7

 

-5.211.124.4

JPMorgan Claverhouse has been the favourite income trust of big investors since 1963. JPMorgan Claverhouse invests in high-priced, established stocks for consistent and stable dividend income and capital growth.

The company, hence, provides a low-risk, expert-backed investment approach with steady annual dividend returns.

North American Income

North American Income Trust pays dividends semi-annually in the first year and quarterly after that. The company’s portfolio consists mainly of the S&P 500 equities. North American Income Trust has a flexible investment policy that includes all kinds of equities, fixed-income investments, warrants, debts, and preference shares. 

Cumulative Performance1 month1 year3 years5 years
NAV-1.011.912.149.0

BMO Managed Portfolio Income

BMO-managed Portfolio Income Trust lets you have an income or growth investment portfolio. It measures its annual success rate against the FTSE 100 Index and has, till now, managed a greater income yield than the FTSE All-share index.

Cumulative Performance1 month1 year3 years5 years
NAV0.8-6.410.817.2

Chelverton UK Dividend Trust

The Chelverton Dividend Trust invests in UK-listed companies for both income and growth. The company’s portfolio mainly consists of medium- and small-cap companies that have been admitted to the list of the UK Listing Authority and trade on the LSE.

Chelverton is a closed-end fund, which is least affected by the investor bringing cash in or out of the trust.

Cumulative Performance1 month1 year3 years5 years
NAV10.1-23.614.6-5.6

Buying income

The Bottom Line

The above-listed income trusts hold a UK domicile and have been selected for their track history and successful annual dividend increase percentage. Some provide capital growth by choosing medium- and small-sized companies for long-term investments.

These funds are great if you are looking at building an income from your portfolio. Typically you look to build an income from a portfolio when you are looking to retire from work and wish for your investments to take over.

If you are younger or still have a long investment time horizon you may wish to look towards more growth.

Check out our article on the difference between growth and income investments to understand more.

What is the Difference between Growth and Income Investments?

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