The Investment trust income Heatmap

9 min Read Published: 08 Apr 2020

Since publishing the 80-20 investor UK income fund heatmap and the Global income fund heatmap members have asked for income heatmaps for other assets and fund types.

This lead to the recent publication of the Alternative asset income heatmaps.

Investment trusts as income-producing funds

However, a popular request has been for the production of an investment trust income heatmap. Investment trusts lend themselves particularly well as vehicles to produce a sustainable income stream for a number of reasons.

Firstly investment trust managers are able to hold back up to 15% of their gross annual income in reserve. This can then be used in future to help smooth the fund's income payouts to investors and maintain them year on year. This is something that unit trust managers can not do. On the Association of Investment Companies (AIC) website you can see this reserve for each fund, called the revenue reserve cover.

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