Miton Global Opportunities (MIGO) could make a useful diversifying holding. The policies followed by the world’s most influential central banks have distorted large parts of the market and left many areas looking vulnerable. This has made it difficult to find pockets of value and uncorrelated sources of return, which is where Miton Global Opportunities could…
There is a growing feeling that UK inflation could pick up dramatically over the next few years. You can see this from the increase in the five-year break even rate, which is based on the yield difference between conventional gilts and those linked to the RPI. In August this hit a 13-month high of 2.6%.…
Investors looking to tap the peer-to-peer (P2P) lending boom would do well to seek out a suitable investment trust in the sector. Investment trusts are the ideal vehicle to provide exposure to less liquid parts of the market, as investors are able to buy and sell the shares on the stock exchange whenever they want…
One of the attractions of investment trusts is that in many cases the managers seem to stay in place longer than they do with open-ended funds, which can result in a more consistent approach. The downside with this is that things can get a bit stale and it sometimes requires a change at the top…
The majority of investment trusts that offer a relatively steady source of income have been bid up well beyond their underlying net asset value (NAV) with investors willing to pay a premium for the secure yield. One fund that has not yet been caught up in the bidding war is the Law Debenture Corporation (LON:LWDB),…
The protracted period of low interest rates triggered by the 2008 financial crisis has pushed up the value of many reliable, income-generating parts of the market to the extent that their valuations have become considerably overstretched. One area where there are still some pockets of value is infrastructure. The companies operating in this sector provide…
Last week I wrote about the merits of investing in index-linked gilts as a way of protecting your capital against inflation. There are several specialist funds that operate in this sector, but if you don’t want to get involved in such a niche area you could get a decent exposure via a core portfolio holding…
It is hard to think of an area that divides opinion more strongly than Socially Responsible Investing (SRI). Those who believe in it think that companies that follow these principles will outperform and by actively engaging with those that don’t they can change the world for the better, whereas sceptics dismiss it as nothing more…
Recent analysis by the Wealth Club showed that the best performing area of the market in August was the UK Index-Linked Gilt sector with an average return of 10.52%. This was home to the five best performing funds, which all rose by more than 12% in the month. The jump in value in August enabled…
The surprise result of the EU referendum sent shockwaves through the financial markets and created a huge amount of volatility. You would normally expect a diversified fund to be relatively immune to this sort of turbulence, but there have been some huge price swings with double digit gains and losses in some of the most…
