The latest edition of Trustnet Magazine, out today, looks at two of the most powerful methods of super-sizing investment trust returns – gearing and discounts.
While taking on more risk may not seem like the best idea with the FTSE 100 and S&P 500 at close to record highs, not all areas of the market look expensive – for example, Adam Lewis finds out the discount on the average AIC UK Smaller Companies trust has doubled over the past year.
Of course, just because something is trading on a wide discount this doesn’t necessarily make it undervalued and the reverse is also true – as Anthony Luzio discovers when trying to find an alternative to infrastructure trusts.
The final investment trust story of the issue sees Emily Perryman offering advice on how to react to a change at the top of one of your holdings.
In our regular features, AXA's Nigel Thomas picks three stocks set to benefit from the greater focus on fiscal stimulus, Neil Shillito reveals why he decided to buy the Alquity Asia fund and John Blowers explains why it is better to avoid temptation and refrain from taking a tax-free lump sum from your pension when you reach 55.
As always, Trustnet Magazine is free – simply click here to start reading or here to download the PDF.