- Our income portfolios have continued to generate good levels of yield in trying times
- However, a scandal in the sector has prompted one major overhaul
The idea that investment trusts provide a reliable income through thick and thin has truly been tested in recent years, from the UK equity dividend suspensions of 2020 to the bond sell off seen over the last two years and the consequences that has had for yield-rich 'alternative' assets. Many trusts have indeed kept their promises on income, but not without plenty of volatility and disruption for shareholders as the sector comes under strain.
That’s evident enough from a glance at our two investment trust income portfolios. The two hypothetical £100,000 portfolios, put together by IpsoFactor Investor chief executive David Liddell and Trust Research director Simon Moore, both generated good levels of yield between the start of October 2022 and the end of September 2023.