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.


Fund Market Cap (£m) Yield (%) Discount (%)
European Assets Trust 183 6.6 4 disc.
BlackRock Commodities Income 103 6.1 4 prem.
BlackRock World Mining 633 5.9 6 disc.
Henderson Far East Income 351 5.6 3 prem.
Merchants Trust 496 5.1 3 prem.
Shires Income 71 5.1 2 prem.
Henderson High Income 183 5.0 4 prem.
British Assets 373 4.9 4 disc.
Middlefield Canadian Inc 114 4.8 2 disc.
Scottish American 320 4.3 3 prem.
Dunedin Income Growth 394 4.3 2 prem.
BlackRock Latin America 169 4.2 8 disc.
Murray Income 514 4.1 2 prem.
 Murray International* 1,359 4.1 11 prem.
BlackRock Latin America 176 4.0 8 disc.
City of London IT 1,086 4.0 3 prem.
JPM Russian 200 4.0 10 disc.
JPM Global Emerging Inc 349 4.0 5 prem.
Schroder Income Growth* 176 4.0 2 disc.
F&C Capital & Income 230 4.0 3 prem.

Source: Oriel Securities

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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