Emma Wall, Head of Investment
Analysis and Research
2024 is not going to be a year of rapid or sustained economic growth. Market consensus in recent weeks seems
to have shrugged off recession fears and is pricing in a goldilocks scenario, where central bankers cut
interest rates but not because they are forced to by an economic hard landing. We aren’t quite as
optimistic, and our five trusts to watch for 2024 have a cautious tone.
But that shouldn’t stop you investing – while volatility is likely to continue through 2024, on a long-term
view this could be a great opportunity to pick up reasonably-priced stocks with international revenues,
attractive dividends, good dividend cover and robust balance sheets.
The experts on our investment research team have picked five investment trusts to watch for 2024 and beyond.
Investing in these trusts isn’t right for everyone. Investors should only invest if the trust’s objectives
are aligned with their own, and there’s a specific need for the type of investment being made.
You should understand the specific risks of a trust before investing, and make sure any new investment forms
part of a diversified portfolio.
This isn’t personal advice or a recommendation to invest. Remember all investments and any income they
produce can fall as well as rise in value so you could get back less than you invested. Past performance is
not a guide to future returns. If you’re not sure an investment is right for you, speak to a financial adviser.
Information correct as at 12 December 2023 unless otherwise stated.
Closed-ended funds can trade at a discount or premium to the net
asset value (NAV).
All of the investment trusts featured here have the flexibility to use gearing (borrowing money to invest),
which increases risk if used because any gains or losses are amplified. City of London, Scottish American
Investment Company, JPMorgan Emerging Markets Investment Trust and HICL Infrastructure all reported use of
gearing in their latest publicly available accounts.
All of the investment trusts featured also have the flexibility to use derivatives, which increases risk if
used.
