- Asian income funds trading cheaply
- Can solar investments power dividends?
- An attractive entry point for a private equity favourite
There has been a tremendous shake up for equity markets in the first two months of 2022 - with inflation spiking in the UK, Europe and the United States forcing central banks to make a hawkish policy pivot. Interest rate rises are happening sooner and closer together than was expected a few months ago and that has played havoc with how investors value shares.
Unfortunately the ongoing crisis in Ukraine and geo-political tensions isn’t helping matters. Escalation to full blown regional war and sanctions on energy-rich Russia will only exacerbate global supply-chain issues that have contributed to the inflationary situation.
Several of the investment trusts in this month's report can be described as mostly having an income focus, which could come in handy given the rise in inflation. Things aren't always so straightforward however, and the impact of rising interest rates makes the investment cases less clear cut. Arguably some of the trusts where the emphasis is on total returns are more attractive as long-term portfolio holdings.
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