The Scottish Mail on Sunday

How a trust can help you relax too

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SOME of the best funds for ‘lazy’ investors are global investment trusts.

Listed on the London Stock Exchange, these vehicles have a number of attractive features.

First, they tend to be broadly invested across the world’s major stock markets, providing shareholde­rs with comforting geographic diversific­ation.

They also have many company holdings, meaning their overall investment performanc­e is not compromise­d if a stake in an individual business goes sour. Although annual charges may not be as low as on some passive funds, most global investment trusts have competitiv­e charges.

For example, Monks and Scottish Mortgage – both managed by Baillie Gifford – have respective total annual charges of 0.43 per cent and 0.34 per cent.

Other global trusts with annual charges of 0.6 per cent or below include Bankers (0.5 per cent), F&C (0.52 per cent), and Scottish (0.52 per cent).

Two other attractive features of global investment trusts are their longevity – some trusts such as F&C go back more than 150 years – and their ability to deliver a steady growth in dividend payments.

Trusts such as Bankers (managed by Janus Henderson), Alliance and F&C have annual dividend growth records going back at least 50 years.

Further details about these lazy investor trusts can be found at website theaic.co.uk.

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