Why should I include British Empire Trust into my portfolio?
- Wider range of investment. British Empire invests in a wide range of international assets, some of them less liquid, which means that some other funds cannot invest in them. These include assets such as private equity and commercial property which have the potential to deliver better long-term returns. For British Empire’s current portfolio sector breakdown please see our latest newsletter.
- Better long-term performance. Access to a wider range of investment means investment trusts can outperform in the long-term. British Empire’s average annual performance stands at 12.3% since June 1985 vs 9.7% for MSCI World ex USA*.
- Dividend payments. (View chart below) Over the past ten years, the ordinary dividends paid by British Empire to shareholders have grown by more than 6.5 times. The level of income may vary due to the occasional receipt of large, one-off, special dividends from investee companies and it is for this reason that British Empire has paid special dividends in the past few years. Naturally, there can be no guarantee that further special dividends will be paid in the future.
* as at 28 February 2017.
- The closed-ended structure of the investment trust means that whenever you want to buy or sell you can simply do so on the stock market without it having any impact on the underlying portfolio. With an open-ended fund subscriptions and redemptions have an immediate effect on how the manager has to manage the portfolio to meet these requests.
- Shares are bought and sold on the stock market which can be done directly through a stockbroker or also on a number of platforms.