Twenty equity closed ended funds yielding 4% or over in UK

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Research from Oriel Securities suggests that there are over 20 closed ended equity funds in the UK investment trust universe, each with a market capitalisation of over £70m, that are yielding above 4%.

“For investors prepared to take equity risk, these may be attractive for income investors at a time of exceptionally low interest rates. In addition, the property, infrastructure, renewable energy and debt fund sectors also continue to offer attractive yields,” Oriel said.

The 4% figure compares favourably against the FTSE All Share yield of 3.4%. For some trusts this has occurred because of falling share prices, and in other cases they have benefitted from their ability to leverage.

A number of the funds identified have yields around 5%. Some of the funds are trading at discounts to their net asset value per share, while others are trading at a price that implies a premium against NAV.

 

FundMarket Cap (£m)Yield (%)Discount (%)
European Assets Trust1836.64 disc.
BlackRock Commodities Income1036.14 prem.
BlackRock World Mining6335.96 disc.
Henderson Far East Income3515.63 prem.
Merchants Trust4965.13 prem.
Shires Income715.12 prem.
Henderson High Income1835.04 prem.
British Assets3734.94 disc.
Middlefield Canadian Inc1144.82 disc.
Scottish American3204.33 prem.
Dunedin Income Growth3944.32 prem.
BlackRock Latin America1694.28 disc.
Murray Income5144.12 prem.
 Murray International*1,3594.111 prem.
BlackRock Latin America1764.08 disc.
City of London IT1,0864.03 prem.
JPM Russian2004.010 disc.
JPM Global Emerging Inc3494.05 prem.
Schroder Income Growth*1764.02 disc.
F&C Capital & Income2304.03 prem.

Source: Oriel Securities

ABOUT THE AUTHOR
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 16 years he has been based in London writing about funds and investments . From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope.

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