Archive for the ‘Uncategorized’ Category

The premium of Investment Trusts

February 11, 2009

Comment on this FT Alphaville blogpost: “Coming up, worst year on record for dividends”

“Widows and orphans” investment trusts* such as Temple Bar and City of London are now trading on premiums despite holding most of their assets in large FTSE-100 constituents. The little item called “revenue reserve” on the balance sheet has gained in value recently!

*You’re supposed to call them “investment companies” nowadays, pfft.