The extremes of equity investing have been clear to see over the past year. The final three months of 2018, a period marked by heightened concerns about central bank policy and an escalating US/China trade spat, saw the MSCI World index lose 11.5 per cent in sterling terms
But investors with steady nerves are likely to have fared well over the 12 months to 30 September 2019. Equities have mostly rallied strongly so far this year and bonds, which provided some defence for portfolios in the final quarter of 2018, have also delivered big returns this year. But while many investors have made good total returns, rising prices have meant a fall in yields, making income even more difficult to find.
Our two investment trust income portfolios have not been immune to last year’s volatility, with the performance of both suffering in the final three months of 2018. They also lagged the subsequent rally in equity and bond markets, although they still made positive returns over the 12 months to the end of September. And, importantly, they have maintained a good level of yield.