Ten investment trusts that offer a stream of income in volatile market
Investing in stock markets is not without risk. We saw it in the run-up to the first lockdown in 2020 as shares slid; endured it as Liz Truss's Government committed hara-kiri late last year; and are experiencing it again as a mix of governments and central banks attempt to prevent a full-scale banking crisis.
For investors in some of the country's most high profile investment funds, these are challenging times. For example, Scottish Mortgage, our largest investment trust with a market value of 9.4 billion, has lost its billing as the private investor's favourite money maker.
The FTSE 100 listed fund, managed by Edinburgh-based investment house Baillie Gifford, has gone into a tailspin since late 2021 as its technology-bent has fallen out of favour in response to higher interest rates, soaring inflation and economic malaise.
Sixteen months ago, the trust's shares were trading above 15. Today, they are a tad above 6.50 and the future looks uncertain as the managers grapple with a portfolio heavily invested in unquoted companies many of which are cash-guzzling and ripe for a write-down in value. Boardroom resignations have added to the swirl of uncertainty.