I'm not sure if anyone on this board would be interested in IT's but I would be very interested in views on particular favourites or well managed/good performing companies, if there are any Investment Trust investors around here.

Personally I use investment trusts to balance out penny share risks in my portfolio and to gain international exposure. A few funds also invest in bonds and money markets which can further diversify risk in a portfolio.

Good value can be had, in some trusts trading at wide discounts to NAV, and also paying good dividend yields.

My current picks are:-

Henderson Euro Microcap - HEU - investing in small Euroland companies with high growth potential

Perpetual Income & Growth Trust - PLI - invests in good divi paying UK companies, the trust has paid a good & rising dividend for the past 10 years

Henderson Far East Income Trust - HFE - exposure to China and the Far East & paying nearly a 5% dividend

City Merchants High Yield Trust - CHY - invests in corporate bonds, currently very oversold and yielding 7% dividend.

I find IT's much easier to buy & sell than Unit Trusts & their ability to borrow enhances returns.

I commend these investments to the house!!

TSQ.

cheers dd, had great fun with Henderson Technology Trust in the boom times as well.

Incidentally, for any dividend chasers out there, I think the 3 divi paying trusts; CHY, HFE and PLI all go ex divi this month if anyone wants the cash.

HFE is a great exposure to the effects of China as well, without the risks of the microcap players.

TSQ.

City Merchants High yield (CHY), goes ex-div on 18June offering 3pence per share, payable mid July.

Forecast annual dividend now over 7%.

I would appreciate if you tell me a little about Henderson Euro Microchip.
rgds aj

ajren,

Sorry delay. I like this one a lot. It was launched at an extremely unfortunate time, ie right at the height of the boom in 99-2000 at 100pence. It suffered as a result & was sold down to 30pence.

It invests in exciting smaller companies capped under 250mio. Stephen Peak, a highly respected Euro equity manager co-manages the portfolio.

The website will give you valuable information, but the real gem here is that the trust has set a high performance target for itself.

It has to beat the HSBC Smaller Europe index by 3% points per annum. If it doesnt do this, it will give investors the option to sell their shares at NAV minus dealing costs.

The trust is currently trading at a discount of 13.34% to NAV. So not only are you buying small cap Euro growth at a discount to NAV, but the manager now has to achieve a high performance target, otherwise investors could realise their investment at the full NAV.

Henderson run a very good monthly or quarterly savings plan into all their trusts. It is also very cheap.

Ajren, any particular questions I will answer as best I can.
http://www.itshenderson.com/its.europeanmicrotrust/

Please can you clarify"what is the period"before you can exercise at nav.

At the end of financial year 30June 2004, the performance target will be assessed.

"Performance Target
I would remind investors that for the financial year to 30 June 2004, the Companys managers are required to meet a performance target of a total return for the Companys NAV per share in excess of the benchmark index (the HSBC Smaller Europe (ex UK) Total Return Index) plus three percentage points. In the event that this target is not met, the Board will present proposals designed to enable those shareholders who so wish to realise their shares for cash at NAV less relevant costs."

Above taken directly from interim report.
http://www.itshenderson.com/_content/PDF/EuropeanMicroTrust/INTERIM/2003_12_31.pdf

quo,any you fancy for mid term ,growth {3/5}years. any info more than welcome.i dont no this field any more. dave.

Thanks for so much information.
I like the 4th paragraph :-It has to beat............
rgds aj

dave,

I think if you're looking at 3-5 years then the 2 Henderson Trusts, the European Micro (HEU) & the Far East Income (HFE) are 2 excellent prospects and I hold both myself as medium termers. My expectation is for them to outperform the UK market.

The European Micro gives exposure to dynamic smaller companies and of course gives a European exposure to your portfolio. Price is stable and attractive at present. Monthly investing might be an option, Henderson start at 50 per month or per quarter, and the scheme is quite cheap. Personally, I still use a stockbroker because I like to be able to move into & out of trusts when discounts widen or narrow.

Likewise, the Far East Trust gives managed exposure to China and the Pacific rim, but the beauty here is the high dividend income(~5%). Total return by re-investing dividends over the next 3-5 years should provide a good return.

TSQ

cheers tsq,i`ll check it out thanks,dave.