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Two investment trust portfolios for income one year on

We check in with our two investment trust income portfolios to work out which have performed the best, paid the most, and are looking healthiest right now
October 28, 2016

Since October last year we have seen a vote for Brexit, a snapback in commodities and an emerging market rally - a tumultuous 12 months for investors of any kind. Equity income is considered to be at the less volatile end of the equity market, but in difficult times all areas can be hit. However, despite an eventful past year both our investment trust income portfolios have managed to deliver a respectable positive return.

The two portfolios were created by David Liddell, chief executive of online investment service IpsoFacto Investor, who put together his portfolio two years ago, and Simon Moore, head of research at consultancy Trust Research, who put together his portfolio last year. Mr Liddell's portfolio was designed to pay out a monthly income from a mixture of UK and international funds. Mr Moore's portfolio has a high allocation to a single trust, Edinburgh Investment Trust (EDIN), and a greater number of investment trusts focused on emerging markets, Asia and frontier markets - as well as some exposure to fixed income.

Of the two portfolios, Mr Liddell's has delivered a higher total return - 16.3 per cent compared with 9.9 per cent - but the individual trusts within Mr Moore's portfolio have been better income generators and grown more in capital terms, too. Mr Moore's large overweight position to Edinburgh Investment Trust, which he has allocated 45 per cent of his portfolio to, explains his portfolio's underperformance in total return terms against Mr Liddell's.

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