High Yield Investment Trusts - AIC Sector and Yield table (August 2023)

[Itsallaguess]

‎
Below is a table of AIC-listed Investment Trusts which yield 3.5% or higher on August 4th 2023.

The table is shown grouped by AIC sector, and then ranked in descending order of yield for each sector, and also shows relevant Discount or Premium information, along with the 5-year dividend growth-rate for each Investment Trust, and with an additional column showing the relevant OCF charges including performance fees.

Please note - the company names in the table below are URL links to the respective AIC 'Portfolio' page for each investment, which will then show the underlying holdings, geographic breakdown, and other useful company-specific information. From there, other tabs on each AIC page can then lead to related areas such as Overview, Performance, Dividends, Charges, and others...

The normal presented data has been enhanced from this month by the addition of a 'Share Price Total-Return 5-year (%)' column, which I hope will be found useful for those of us who do keep one eye on TR figures...

If anyone wishes to replicate this type of data-set themselves at any time, there are some simple instructions at the bottom of this post on how to do that...




I've dip-checked the above data, but please do note that it should be used only as a starting-point for further investigation, and it should certainly be the case that you should carry out your own due-diligence on any data that you may use for any subsequent investment decisions that you might wish to make...

A good source to cross-check some of the above data, if anything does look interesting or even suspicious, is the TrustNet website, which also gives yield and discount information for these types of investments - https://www.trustnet.com/

Here are some instructions to be able to generate up-to-date yield-data in the future, using the above excellent AIC website -

1. Open the AIC website (https://tinyurl.com/yawfc9zy)

2. Select the 'Choose your AIC Sectors' button, and then click 'Deselect all sectors' and then 'Reselect all sectors, followed by a manual un-selection of all the lower 'VCT' sectors group.

3. From within the 'Sectors' window, select the link on the bottom right labelled 'Select your data points', which will then open the data-points selection window.

4. In the 'Data points' window, click 'Deselect all', and then manually select TIDM, Management Group, AIC Sector, Traded Currency, Total Assets, Discount/Premium, Share Price Total Return (5-year), 5yr Div Growth Rate (% pa), Ongoing charge including performance fee, Dividend Cover (yrs), and Dividend Yield (%)

5. Close the 'Data points' window

6. Select the 'Finish and Save / Print' button, and in the window that appears, make sure to un-select the 'Include AIC sector weighted averages' box, and then select the box marked 'Enable Print Mode', before closing that window

7. The presented AIC data can now be copied and pasted into a spreadsheet, and then filtered by sector or yield as required.

• Please also note that if you don't select the 'Enable Print Mode' option during the above process, and you then try to copy the data into a spreadsheet, then it's likely to only copy some of the data...

Cheers,

Itsallaguess

[monabri]

The " share price total return" ( SPTR) looks to be a bit of a misnomer! The SPTR is a total return figure. I crossed checked the SPTR of Henderson Far East ( HFEL -with a tabulated SPTR of -4.7% over 5 years) against the Hargreaves Lansdown website data.

Source: https://www.hl.co.uk/funds/fund-discoun ... ion/charts

[Itsallaguess]

The "share price total return" ( SPTR) looks to be a bit of a misnomer!

The SPTR is a total return figure.

I crossed checked the SPTR of Henderson Far East ( HFEL -with a tabulated SPTR of -4.7% over 5 years) against the Hargreaves Lansdown website data.

I agree - it's a confusing heading from the AIC site, and in future I think it's probably best if we just tabulate it here as '5-year Total Return'...

Cheers,

Itsallaguess

[monabri]

The "share price total return" ( SPTR) looks to be a bit of a misnomer!

The SPTR is a total return figure.

I crossed checked the SPTR of Henderson Far East ( HFEL -with a tabulated SPTR of -4.7% over 5 years) against the Hargreaves Lansdown website data.

I agree - it's a confusing heading from the AIC site, and in future I think it's probably best if we just tabulate it here as '5-year Total Return'...

Cheers,

Itsallaguess

That column makes interesting reading!

[kempiejon]

That column makes interesting reading!

I thought that too, I have both the Blackrock natural resources options and Dunedin and have for over 5 years. I do also have Apax and NBPE but only about 3 years in them.

[moorfield]

Excellent info as always IAAG. You could build a pretty good 15-holding HYP PHY from that I think.

[BullDog]

Thank you iaag, much appreciated posting this again.

My first thought - LTI is looking interesting?

[Itsallaguess]

That [5-year Total Return] column makes interesting reading!

It certainly does...

I was a little torn as to which of the 1-year, 3-year, 5-year, or 10-year TR columns should be included, and I'm concious that with such a large table of primarily income-focussed information, we might start to get bogged down if we include too many columns, which also then starts to create horizontal scroll-bars for some users, depending on the width of their monitors, so I'm thinking aloud now and wondering if it might be worth pulling these Total-Return columns into a second, separate table, following the first one, from where some more granular Total-Return investigations can then be carried out after using the first 'vanilla' table as a starting-out point.

I'll give that a go next month and we'll see how it looks, but I think seeing some wider TR figures for 1, 3, 5, and 10-years might be more useful in that separate table than trying to cram one 5-year TR column into that already-busy initial data-set...

It'll be no more work on my part, as I can just hide some alternate Excel columns when producing each table, but I think it might be a more readable data-set each month if it's split into two...

Comment are welcome on the above idea, of course...

Cheers,

Itsallaguess

[tramrider]

That [5-year Total Return] column makes interesting reading!

It certainly does...

I was a little torn as to which of the 1-year, 3-year, 5-year, or 10-year TR columns should be included, and I'm concious that with such a large table of primarily income-focussed information, we might start to get bogged down if we include too many columns...

Cheers,
Itsallaguess

Hello, Itsallaguess,
The table fits fine onto my laptop screen. If you need to reduce width, I would suggest removing the Dividend Cover column (which is very variable in its usefulness) rather than the 5-year Total Return column, which is a major selection criterion for me.

Thanks for your efforts,
Tramrider

[funduffer]

Thanks for this list.

I find it interesting that nearly all sectors show most IT's at a discount, many at more than 10%. A minority of IT's are at a premium.

I suspect the overriding reason for this is high interest rates, which must make IT's gearing ability more difficult?

On the other hand, if you believe interest rates may have peaked (or nearly so), then this looks like a fabulous opportunity to buy some established names at bargain prices!

FD

[Itsallaguess]

Thanks for this list.

I find it interesting that nearly all sectors show most IT's at a discount, many at more than 10%. A minority of IT's are at a premium.

I suspect the overriding reason for this is high interest rates, which must make IT's gearing ability more difficult?

On the other hand, if you believe interest rates may have peaked (or nearly so), then this looks like a fabulous opportunity to buy some established names at bargain prices!

I agree.

Whilst much is often quite rightly made on these boards regarding the additional layer of management costs associated with using Investment Trusts as part of an income-strategy, I think the ability to sometimes pay a discounted IT share price in relation to a particular income-IT's underlying holdings can sometimes offer up useful opportunities for patient, long-term buy-and-hold income-investors.

Yields and Discounts play a large part in my selection criteria for both new income-IT purchases and my regular top-ups of existing holdings, but i do also keep a watchful eye on total-return figures because I do prefer to also see some capital appreciation in my income-related holdings too...

Cheers,

Itsallaguess

[BullDog]

Thanks for this list.

I find it interesting that nearly all sectors show most IT's at a discount, many at more than 10%. A minority of IT's are at a premium.

I suspect the overriding reason for this is high interest rates, which must make IT's gearing ability more difficult?

On the other hand, if you believe interest rates may have peaked (or nearly so), then this looks like a fabulous opportunity to buy some established names at bargain prices!

I agree.

Whilst much is often quite rightly made on these boards regarding the additional layer of management costs associated with using Investment Trusts as part of an income-strategy, I think the ability to sometimes pay a discounted IT share price in relation to a particular income-IT's underlying holdings can sometimes offer up useful opportunities for patient, long-term buy-and-hold income-investors.

Yields and Discounts play a large part in my selection criteria for both new income-IT purchases and my regular top-ups of existing holdings, but i do also keep a watchful eye on total-return figures because I do prefer to also see some capital appreciation in my income-related holdings too...

Cheers,

Itsallaguess

Quite. It's not unusual to be able to buy a ready made income portfolio within an investment trust at a discount sometimes in double figures compared to buying the underlying shares. And avoid paying multiple buying charges. Well worth considering in my opinion.

[toofast2live]

I agree.

Whilst much is often quite rightly made on these boards regarding the additional layer of management costs associated with using Investment Trusts as part of an income-strategy, I think the ability to sometimes pay a discounted IT share price in relation to a particular income-IT's underlying holdings can sometimes offer up useful opportunities for patient, long-term buy-and-hold income-investors.

Yields and Discounts play a large part in my selection criteria for both new income-IT purchases and my regular top-ups of existing holdings, but i do also keep a watchful eye on total-return figures because I do prefer to also see some capital appreciation in my income-related holdings too...

Cheers,

Itsallaguess

Quite. It's not unusual to be able to buy a ready made income portfolio within an investment trust at a discount sometimes in double figures compared to buying the underlying shares. And avoid paying multiple buying charges. Well worth considering in my opinion.

Most, but not all, discounts readily explained by dismal total return. The argument for shares rather than deposits (now interest rates are normalizing) is that shares MIGHT deliver capital growth as well as an income. But on the whole that table shows an overall mediocre performance in terms of both inflation linked dividends increases and capital appreciation.