Revealed: Top UK small-cap trusts for income seekers

ITs

It is not just large-cap stocks with the most reliable dividends, says James Burns, head of multi-manager at Smith & Williamson.

In times of market stress and uncertainty the investment trust sector can throw up all kinds of opportunities for investors prepared to ride out short-term volatility and take a longer-term view. What is interesting this time round is that against the backdrop of low returns from bonds and cash, large parts of the sector, – primarily those with a yield mandate are trading at historically narrow discounts or substantial premiums. Investment trusts have the ability to store up revenue reserves for rainy days by not having to distribute all of the income they receive from the underlying ...