Shares Magazine: Four ways to use investment trusts | Whitechurch Securities Limited | Redland, Bristol

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Shares Magazine: Four ways to use investment trusts

Trusts as satelite holdings...Tepes likes alternative energy trusts, like NextEnergy Solar Fund (NESF) and Greencoat UK Wind (UKW), as satellites, while Gavin Haynes, managing director of Whitechurch Securities favours trusts like F&C Commercial Property (FCPT) for illiquid investments like property. The closed-end structure means managers will never be forced into a fire-sale of assets at knock-down prices to meet redemptions.

Income generating trusts...Investment trusts can work well for income-seekers not least because trusts can hold back 15% of dividends generated by the underlying portfolio each year.

‘This can be used to supplement dividends in future years should the income disappoint due to dividend cuts,’ says Haynes. ‘It can prove an excellent way for trusts to build long records of dividend growth.’

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Shares Magazine: Four ways to use investment trusts