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Sarah Godfrey: Inflation busters in the spotlight

The AIC has produced some interesting research on the investment companies that have produced inflation-busting share price returns

Private equity investment trusts offer dividends and growth at a discount

Private equity investment trusts offer dividends and growth at a discount

Fill your boots with private equity trusts: They can be lucrative

At present, private equity players may have as much as £1.7trillion of dry powder in the form of ready cash to spend, with UK firms seen as alluringly cheap.  This news will dismay those who deplore private equity practices, such as loading up companies with debt, a strategy that wreaked havoc on our high streets, or their slash and burn approach of selling valuable assets with the aim of making maximum gains in minimum time.  But it will also provoke bewilderment. Why, given the opportunities for lucrative deals, are some of the private equity investment trusts trading at an average 18 per cent discount? This is when a trust s share price is below the net value of its underlying holdings. 

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