Trading

If u had any basic trading system u would have made more of a profit with SSON, trading because they don’t pay a dividend.

Investing

If u wanted to GRS by re-investing your dividends the FTSE would have been your best long term investment. Well on the way to doubling your money with a low risk strategy.

It’s all random, isn’t it ?

Best investment trusts for your pension: Tips for your portfolio throughout your financial life
By This Is Money

When it comes to building your pension pot or investing it for retirement income, finding a reliable investment matters.

Returns are never guaranteed – and investments go down as well as up – but there are some characteristics that make some stand out.

Many investment trusts have built remarkable track records for raising dividends, making them a popular option for people drawing down an income in retirement.

But financial advisers have also come up with some top picks from the world of investment trusts for those still building up a pension too.

The Association of Investment Companies has compiled expert recommendations for what is known in financial jargon as the ‘accumulation’ phase of a saver’s life, and for those needing an income in the ‘decumulation’ stage in retirement.
Investment trusts are listed companies with shares that trade on the stock market.

They are known as closed-ended, because investors can buy or sell shares to join or leave, but new money outside this pool cannot be raised without issuing new shares.

That is unlike open-ended investment funds where money is pooled to invest in shares, bonds or other funds.

Investment trusts can be riskier than funds because their shares can trade at a premium or discount to the value of the assets they hold – see below for more on how this works.

Although the list below has been picked by four professional financial advisers, remember that this is not individual financial advice and you should always check if an individual investment is right for you. If in doubt, seek independent financial advice.

Saving: ‘I’m still building up a pension’
Paul Chilver, financial planning manager at Birkett Long

With the seemingly ever-increasing state pension age and the forthcoming increase to the age an individual can access their pension, investing into a pension is for the long term.

With this in mind investment trusts, many of which are trading close to record discounts, could be an excellent option.

Discounts are particularly attractive on UK-focused investment trusts and one suggestion for the accumulation stage of investment is the Mercantile Investment Trust managed by JPMorgan which has been at a double-digit discount for many months despite very good short-term performance.

Mercantile Investment Trust (Ongoing charge: 1.41 per cent)

What is an ongoing charge?
The ongoing charge is the investing industry’s standard measure of fund or trust running costs.

The bigger it is, the costlier the fund is to run.

Philippa Maffioli, senior investment manager at Blyth-Richmond Investment Managers

During the accumulation phase when growth and diversification are essential, I recommend Worldwide Healthcare Trust.

This global trust gives investors the opportunity to gain exposure to pharmaceutical, biotechnology, and other related healthcare companies all within an actively managed portfolio.

These range from large multinational pharmaceuticals to unquoted emerging biotechnology companies. The fund is managed by OrbiMed Capital which was founded in 1989 and has become the largest healthcare investment firm in the world.

The team are actively looking at nearly 1,000 companies and the team works to identify sources of outperformance as well as those with underappreciated products in the pipeline with high quality management teams and strong financial resources.

Worldwide Healthcare Trust (Ongoing charge: 0.83per cent)

I am very keen for my clients to gain exposure to the management style of Spencer Adair and Malcolm MacColl of The Monks Investment Trust during the accumulation phase of a Sipp.

Their aim is to focus on global companies from a range of profiles with above average earnings growth which they expect to hold for around five years.

That said, they are known for addressing issues head on and aren’t afraid to take a critical look at their portfolio when necessary, which I believe is very compelling.

I believe that Monks is well positioned to capitalise on the continuous shift to a more digitalised world and must be included in a portfolio where growth is required.

Monks Investment Trust (Ongoing charge: 0.69 per cent)

What is net asset value?
A trust’s shares can trade at a premium or discount to the value of the assets it holds, known as the net asset value.

NAV is calculated by dividing the total value of a trust’s assets (what it owns) minus liabilities (what it owes) by the amount of shares existing.

A trust’s share price can fall below the total value of its holdings if it is unpopular and people do not want to invest but do want to sell. This pushes down demand and drives up the supply of its units for sale.

This gives new investors the opportunity to buy in at a discount, but means existing investors’ holdings are worth less than they should be.

An investment trust trading at a discount to NAV may be regarded as cheap because the shares cost less than its overall value – although there might be good reasons why, such as investors being justifiably pessimistic about its prospects.

When a trust trades at a premium to NAV it is more expensive than its net worth.

Doug Brodie, founder and chief executive of Chancery Lane

In building pensions investors should take note that trusts like Lowland, Murray International and City of London have all handsomely outperformed the FTSE All Share over the last 20 years.

Investment trusts may not have the sales and marketing budgets of pension companies so investors have to look a bit harder.

A quick look at the long-term returns will show folk there’s a good reason that institutional investors are big investors in trusts.

Lowland (Ongoing charge: 1.03 per cent)

Murray International (Ongoing charge: 0.78 per cent)

City of London (Ongoing charge: 0.65 per cent)

Neil Mumford, chartered financial planner at Milestone Wealth Management

For those looking for growth, I’d recommend JPMorgan Global Growth and Income Trust. This is one of the few investment trusts to be trading at a premium, but this should not concern long-term investors.

It places a high emphasis on the world’s largest stock market the US, accounting for two-thirds of the portfolio. It is a high conviction portfolio with 50 to 90 holdings, with the top ten making up more than 40% of the portfolio.

This has allowed it to outperform by some margin with a 305 per cent return over the last ten years.

There will be times when there may be swings in the portfolio value but for the patient investor this will hopefully pay off. If there was concern about the premium, this trust would also be ideal for regular monthly investments.

JPMorgan Global Growth and Income (Ongoing charge: 0.66 per cent)

Drawdown: I need to invest for income
Neil Mumford of Milestone Wealth Management

The Scottish American Investment Company is my choice for someone looking at building either an income or growth portfolio and is a top five holding in my own Sipp.

I am still accumulating but it will stay once I am drawing down. It is a truly diversified equity portfolio, spread equally between the US and Europe at around 35 per cent each of the portfolio.

Neil Mumford: The Scottish American Investment Company is a top five holding in my own Sipp

Although it doesn’t have the highest yield at 2.9 per cent, this dividend hero has increased its payouts by an average of 4.2 per cent a year over the past five years and this dividend increase has not hampered its ability to grow capital – a total return of more than 170% over the last ten years should please any investor.

The price is currently a complete bargain when you consider that it is trading at an extremely attractive discount to net assets of around 10 per cent when historically it has been trading at near NAV or at a premium.

Scottish American Investment Company (Ongoing charge: 1.01 per cent)

Philippa Maffioli of Blyth-Richmond Investment Managers

During the decumulation phase when capital growth is not as important and the emphasis can shift towards capital preservation, Personal Assets Trust has an important place in many retirees’ portfolios.

The manager’s approach is reassuringly conservative and is focused on looking at the risk of losing money rather than the risk of volatility.

Even though this is the case, it offers global diversification across four asset classes and is a bedrock for lower risk and/or decumulating portfolios.

It is managed by Sebastian Lyon who is assisted by Charlotte Yonge and their policy is to protect and increase (in that order) the value of shareholders’ funds over the long term.

Personal Assets Trust (Ongoing charge: 0.67 per cent)

Ruffer Investment Company is another trust which concentrates on capital preservation and has a very successful track record in achieving this.

The objective is to maintain a diverse strategy incorporating short-dated bonds, credit and derivative strategies and precious metals, plus a diverse spread of international equities.

The investment strategy and asset allocation are set by Henry Maxey and Neil McLeish, Co-Chief Investment Officers, supported by a team of senior fund managers and research analysts.

Paul Chilver: Investment trusts can smooth their income payments, meaning some income can be retained in case it is needed in future

Ruffer seeks to preserve capital using a very disciplined approach with the prime objective of maintaining value over a one-year period and growing capital over the longer term. This means they would perceive a loss in line with the market as a failure.

Ruffer Investment Company (Ongoing charge: 1.07 per cent)

Paul Chilver of Birkett Long

When you come to draw an income from your pension investment trusts are an excellent choice.

In part this is because they can smooth their income payments, meaning some income can be retained in the trust in case it is needed in future when stock markets may be more volatile.

There are many investment trusts paying an attractive dividend and my first suggestion is a UK-focused investment trust, Edinburgh Investment Trust.

This is a long-standing investment trust and is now managed by Liontrust following their acquisition of Majedie.

A second suggestion would be a global investment trust, JPMorgan Global Growth and Income.

This trust has its greatest weighting to US equities and is currently paying a yield of 3.4 per cent per annum.

Edinburgh Investment Trust (Ongoing charge: 0.53 per cent)

JPMorgan Global Growth and Income – also see above (Ongoing charge: 0.66 per cent)

INVESTMENT MANAGER’S REPORT

REVIEW OF 2023 PERFORMANCE

Last year was another year of economic uncertainty and geopolitical turmoil with the war in Ukraine, tensions between China and the US, and conflict that erupted once more in the Middle East. Supply chains remained under pressure, and consumers in many countries had to contend with a continued cost-of-living crisis, in large part precipitated by persistently high inflation. In response to inflationary pressures, key central banks continued to raise interest rates. The US Federal Reserve increased the federal funds rate four times over the year, from 4.25%-4.5% to 5.25%-5.5%, although it refrained from further rate hikes after July. This pause in further rate hikes gave rise to hopes that rates might be cut in 2024, although statements from Federal Reserve officials have somewhat dampened optimism.

With financing options harder to come by in an environment of higher interest rates, venture capital (“VC”) markets have been subdued, and VC investors have been cautious. The excitement over generative artificial intelligence meant that other technology-focused companies struggled to secure funding. Moreover, the collapse of Silicon Valley Bank and the poor post-flotation performance of several high-profile technology companies added to VC investors’ wariness. Crunchbase reports that VC funding fell to its lowest level for five years in 2023, with a 38% decline from the previous year. Meanwhile, mergers and

acquisitions (“M&A”) fell to their lowest level for a decade.

Similar to 2022, VPC’s strong performance of its asset-backed lending investments was outweighed by weakness in the equity portion of the portfolio in 2023. By year-end, the Company’s asset-backed lending investments represented approximately 73.0% of the total investment portfolio. Here, the Company benefitted from continued increases in short-term interest rates during the year, which underscore the power of variable-rate loans. The remainder of the investment portfolio comprises the Company’s equity interests.

The Company completed the year with a NAV total return of -9.45%, a gross revenue return of +13.93% and a gross capital return of -18.34%. The Company’s revenue return remained in line with expectations, providing a full cash coverage of the 8.00p per share dividend for Shareholders during the year as set out in the IPO Prospectus (the “Target Dividend”). In February 2024, the Company declared its 24th consecutive quarterly dividend payment of 2.00p per share for the three months to 31 December

2023, and the dividend was paid to Shareholders in March 2024.

Although capital returns were negative, the FinTech portfolio continued to produce consistently positive revenue returns. Since the agreement to realise the Company’s assets at the General Meeting held in June 2023, the Investment Manager has achieved the repayment of several asset-backed FinTech investments. These include the positions in Applied Data Finance, LLC, and, after the year-end, Elevate Credit, Inc., and Koalafi (formerly known as West Creek Financial, LLC). In the FinTech equity portfolio, the reduction in unrealised capital returns generally stemmed from marking these investments to year-end exit values, in light of near-to-medium-term exit opportunities and the depressed VC and M&A environment.

For the Company’s eCommerce assets, the ongoing depression of revenue growth and margins in the overall industry played a significant role in the adjustment of the fair market value of equity holdings. This arose as consumers came under pressure from the cost-of-living crisis, and companies had to cope with further disruptions to their supply chains. In certain cases, individual portfolio holdings underperformed expectations, leading to additional adjustments. The Investment Manager is actively working to mitigate the risks associated with this sector of the portfolio, including exploring strategic combinations, among other options. Please see the Subsequent Events section below for additional details on specific strategic combinations. VPC continues to work with its eCommerce Portfolio Companies as they strengthen their balance sheets and evaluate additional strategic combinations in an effort to maximise Shareholder value.

The Company’s positions in legal finance have continued to perform well, and the Investment Manager continues to evaluate exit opportunities for these investments.

At the year-end, the Company accrued ECL reserves of £6.4 million (£16.4 million at 31 December 2022). During the year, certain asset-backed lending investment maturities were extended to reflect changes in the circumstances of the particular investment or the prevailing market conditions. In each case, these extensions were made to preserve value for the Shareholders, as disclosed in the General Meeting Circular.

During the realisation process, VPC will continue to draw on its longstanding reputation and relationships with management teams, industry professionals and experts to determine the most cost-effective distribution mechanisms for maximizing Shareholder value.

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4 Stocks With No Sell Ratings Offering Stable Dividends, High Growth Potential

Story by Ismael De La Cruz

Amid growing interest in dividend-focused ETFs, investors seek stocks that offer both reliable dividends and growth potential.
Today, we’ll unveil a selection of such stocks meeting criteria like attractive dividends, stable earnings, and no sell ratings.
With Investing Pro’s tools, we’ve curated a compelling list of candidates poised for growth and increasing dividends

• Kinder Morgan
  The company was formerly known as Kinder Morgan Holdco and changed its name to Kinder Morgan (NYSE:KMI) in February 2011. It was incorporated in 2006 and is headquartered in Houston, Texas
• It is one of the largest energy infrastructure companies in America, being specialized in oil and gas pipelines.
• On May 15, it pays a dividend of $0.2875 per share, and in order to receive it, shares must be held before April 29. Its dividend yield is 6.10%
• On July 17 it presents its results. Looking ahead to 2024, it expects EPS or earnings per share to increase by 14.1% and revenue by 12.9%.
• The company has been a trusted role model when it comes to dividends, increasing them for 6 consecutive years and maintaining payouts for 14 consecutive years, reflecting Kinder Morgan’s financial discipline and commitment to shareholder returns.
• The first quarter results reinforce the company’s confidence and the company’s extensive pipeline network is expected to be instrumental in the shift to low-carbon energy sources.
• In addition, Kinder Morgan shares are known for their low volatility, which may appeal to investors looking for stable stocks in the energy sector.
• Over the past 12 months it is up 14.25% and has no sell ratings.
• The potential the market gives it is around $20.41, although it will first have to overcome resistance at $19.3

• Philip Morris International
  Philip Morris International (NYSE:PM) is a tobacco company that was incorporated in 1987 and is headquartered in Stamford, Connecticut.
• The dividend yield is 5.5%. The company has been increasing it for 17 consecutive years.

• On April 23 it presents its accounts. For the current year the forecast is for an increase in EPS of 5.3% (9.8% by 2025) and revenue of 5.4%.
• Philip Morris’ gross profit margin is 63.39%, indicating strong operating efficiency and pricing power in the market.
• It has invested $12.5 billion to develop innovative adult smoke-free products, which are already in 84 countries and used by 20.8 million people, accounting for 37% of the company’s total net revenues in the full year 2023.
• Its shares are up 0.80% over the past year. It has no sell ratings.
• The market gives it a power at $108.09, although for example Citi is more bullish and puts it at $113

• Verizon Communications
  Verizon Communications (NYSE:VZ)is engaged in the provision of communications, technology, information and entertainment products and services to consumers, businesses and government entities worldwide.
• The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications in June 2000. It was incorporated in 1983 and is headquartered in New York.
• With a dividend yield of 6.57%, it ranks among the top performers in terms of dividends over the past seven years.
• On April 22 we will know its quarterly results and this year it will meet its free cash flow (cash generation) target by touching $10 billion.
• To its credit, Verizon gives customers access to exclusive, money-saving content offerings that they can’t find at other providers, and it is leading the industry.
• It is a defensive stock with solid cash generation and good dividend coverage.
• Over the last 12 months its shares are up 17.17% and it has no sell ratings.
• The potential assigned by the market is at $45.72.

• Eversource Energy
  Eversource Energy (NYSE:ES) is engaged in the energy supply business. The company was formerly known as Northeast Utilities (NYSE:ES) and changed its name to Eversource Energy in April 2015. It was incorporated in 1927 and is headquartered in Springfield, Massachusetts

• Its dividend yield is 4.80%. Its payout (percentage of profits it allocates to dividends) keeps increasing.
• May 2 will be the time to know its accounts. By 2024, EPS is expected to increase by 5.3% and revenues by 9.3%.
• Its shares have fallen by -21% in the last year, although in the last 3 months they have risen by 14.50%.
• The market sees potential at $66.83.

I’ve sold 225 shares in JLEN for a ‘profit’ of £200.00. I only managed to re-invest 6k so the price moving ahead has caused me a small dilemma.

But a profit is a profit is a profit.

Here’s why I see cheap UK shares soaring in the years ahead

Story by Charlie Keough

View of Tower Bridge in Autumn© Provided by The Motley Fool

Retail investors have endured a lot of pain in the last few years and share prices have taken a beating. But instead of complaining, I want to make the most of it. That’s why I’m buying cheap UK shares.

It’s a rare opportunity I believe investors should consider pouncing on. Today, the FTSE 100 trades on an average price-to-earnings (P/E) ratio of just 11, which is below its historic average of around 14. Yet yesterday (22 April), the index closed at an all-time high. That’s a mismatch I plan to capitalise on.

Better times ahead

The FTSE 100 has risen 4.4% year to date while the FTSE 250 has climbed 0.8%. With that in mind, it seems like things could be on the up going forward.

Both indexes have been ticking upwards as investor sentiment has steadily been rising. Market spectators are gearing up for interest rate cuts as early as June as inflation slowly drops closer to the government’s 2% target. Looking ahead, as cuts continue over the months and years to come, this should provide markets with a boost.

We’ve also had some positive retail figures in the first few months of the year, which further signal that we’re heading in the right direction.

Of course, threats do persist. Rate cut talk is speculative. And while inflation is falling, it still lingers.

Yet regardless of any potential near-term setbacks, I think UK-listed companies are well-positioned for growth in the years to come. With that, I’m going shopping.

Cash to be received next month for re-investment £1,017.00, plus current cash of £339.00.

Destination unknown, either AGR, JLEN, PHP.

A share I allowed the market to chase me out because of FTSE weakness. As the discount to NAV has closed I would sell today, if I hadn’t but I can’t because I have already sold. Always easier in the rear wing mirror.

Thursday 25 April

abrdn Asian Income Fund Ltd ex-dividend payment date
AVI Japan Opportunity Trust PLC ex-dividend payment date
Bankers Investment Trust PLC ex-dividend payment date
City of London Investment Trust PLC ex-dividend payment date
CQS Natural Resources Growth & Income PLC ex-dividend payment date
Foresight Solar Fund Ltd ex-dividend payment date
Henderson Far East Income Ltd ex-dividend payment date
Invesco Select Trust PLC Global Equity Income ex-dividend payment date
Invesco Select Trust PLC UK Equity ex-dividend payment date
JPMorgan Claverhouse IT PLC ex-dividend payment date
Murray International Trust PLC ex-dividend payment date
Schroder Oriental Income Fund Ltd ex-dividend payment date
Seed Innovations Ltd ex-dividend payment date
Shaftesbury Capital PLC ex-dividend payment date