Unlike other investment vehicles, these companies do not have to pay out all of the income they receive from their portfolios each year. They can hold 15% back in reserve.

This means they can hold back some of the income they receive in good years and use it to boost dividends when businesses may be cutting theirs.

This structural advantage gives investment trusts a unique quality. It also means they have been able to pay consistent dividends through both the good and bad times. 

This quality is the main reason why I believe investment trusts deserve a place in my passive income portfolio. With that in mind, here are two trusts I would buy for income right now. 

Investment trusts for income 

The first on my list is the City of London Investment Trust (LSE: CTY). This firm has one of the longest track records of consistent dividend increases in the investment trust space. It has continually increased its payout for 55 years.

The portfolio is concentrated in a diverse basket of London-listed equities. At the time of writing, the stock supports a dividend yield of 4.8%.

A downside of using investment trusts to invest for income is they tend to charge an annual management fee. In this case, it’s nearly 0.4%. This charge could eat into investor returns in the long run.

There will also be a chance the manager could pick the wrong investments, incurring losses for my portfolio. 

Even after taking these factors into account, I would buy the City of London for my portfolio as an income investment today. 

Passive income play 

While City of London has a UK focus, the Bankers Investment Trust (LSE: BNKR) has a more diverse focus. 

Like City, Bankers has also been paying and increasing its dividend for 55 years. At the time of writing, the stock supports a dividend yield of 2%. It has an annual management charge of 0.5%. 

Some of the most significant holdings in the portfolio are international growth and income giants. The largest is technology group Microsoft. The trust has made a trade-off here. Rather than focusing on income alone, it focuses on income and growth, which has produced better capital returns in the long run. 

Still, Bankers’ focus on growth stocks rather than income plays alone could expose me to more volatility. If these companies do not live up to the market’s lofty growth expectations, they could underperform and hit the trust’s returns.

The focus on growth and the lower yield are the reasons why I would own this company alongside the City of London. I think the two corporations complement each other perfectly. 

Here, I’m going to highlight two investment trusts I’d buy for both income and growth. Both of these trusts have delivered strong capital gains over the long term along with rising dividends. 

A top investment trust for income and growth

One investment trust I’d be happy to add to my portfolio for both income and growth is Bankers (LSE: BNKR), which was incorporated all the way back in 1888. Its aim is to achieve capital growth in excess of the FTSE World Index and dividend growth greater than inflation over the long term. Janus Henderson is the trust’s investment manager. 

Bankers Investment Trust has delivered impressive long-term results on both the income and growth fronts. On the income side, it has now delivered 54 consecutive dividend increases. As a result of this track record, it is classified as a ‘Dividend Hero‘. Currently, the yield is a little under 2%.

Meanwhile, on the growth side, performance has been strong. For the five years to 30 June, the trust’s net asset value (NAV) increased 99%. By contrast, its benchmark, the FTSE World Index, returned 88%.

This trust owns some great companies. Names such as Microsoft, Visa, and American Express are currently in the top 10 holdings. One risk to consider here, however, is that the trust is currently quite heavily weighted to two very cyclical sectors – industrials and financials. If economic conditions deteriorate, it could underperform.

Ongoing charges are a reasonable 0.5% per year.

Growth and dividends: a winning combination 

Another trust I’d buy for income and growth is the Alliance Trust (LSE: ATST). It aims to include core equity holding for investors that deliver a real return over the long term through a combination of capital growth and a rising dividend. It invests primarily in global equities across a wide range of industries and sectors. 

This trust has a unique investment process. Its investment manager, Willis Towers Watson, has appointed a number of stock pickers with different styles, who all ignore the benchmark and buy a small number of stocks in which they have a strong belief. The result is that investors enjoy both highly-focused stock picking and increased diversification.

Long-term performance here has been very good. For the five years to 31 July, the trust delivered a total shareholder return of 95%. By contrast, the MSCI ACWI index delivered a total return of 82%.

It also has a good long-term dividend track record. Like Bankers, it is a Dividend Hero. Currently, its yield is about 1.4%.

I really like the portfolio here. Top holdings at the end of July included Alphabet (Google), Microsoft, and Visa. One risk to consider, however, is that it has a bias towards the technology sector. If tech stocks fall, this trust could underperform.

Ongoing charges are around 0.65% per year.

Here, I’m going to highlight two top growth-focused investment trusts I’d be happy to buy for my own portfolio today. Both own a selection of world-class companies and have strong long-term track records.

A top growth investment trust for 2021

One investment trust I hold in high regard is Monks (LSE: MNKS). It’s an under-the-radar offering from Baillie Gifford – the investment manager that runs the highly popular Scottish Mortgage Investment Trust. The aim of this trust is to generate capital growth over the long term by investing in global equities.

What I like about Monks is that it has a very well diversified portfolio. Unlike SMT, it doesn’t take large bets on higher-risk stocks. This reduces risk significantly. This is illustrated by the fact that while SMT is down about 8% this year after the tech stock sell-off, Monks is flat. Having said that, SMT has been the stronger performer over a 12-month time horizon, returning 114% versus 82% for Monks.

There are currently some great stocks in Monks’ portfolio. At 31 January, Alphabet, Amazon.com, and Microsoft were all top-10 holdings. This investment trust isn’t solely focused on tech stocks though. You’ll also find companies such as insurer Prudential, alcoholic beverages giant Pernod Ricard, and make-up powerhouse Estee Lauder in the portfolio.

Of course, there are risks to consider here. One is the trust has a bias towards US stocks. At 31 January, nearly 50% of the trust was in US stocks. If they underperform, the trust could underperform.

However overall, I think this is a fantastic growth-focused investment trust. With ongoing charges of just 0.48% per year, I see this trust as a great way to get global equity exposure.

Capital growth and income

Another investment trust I like is Bankers (LSE: BNKR). It’s also a global equity-focused product. This trust was launched all the way back in 1888, so it’s fair to say it’s been established for a while.

While Bankers has a focus on growth, it also aims to provide a bit of dividend income too. Currently, it offers a yield of around 2%. It’s worth noting this trust is part of an elite group known as ‘AIC Dividend Heroes’. These are trusts that have consistently increased their dividends for at least 20 years in a row. Bankers is actually the joint record-holder for consecutive annual dividend increases with 54 registered.

Like Monks, this investment trust owns some great stocks. Top holdings include the likes of Microsoft, Mastercard, and Visa. Performance hasn’t quite been as strong as that of Monks. Over the last 12 months, the trust has ‘only’ returned about 42%. However, it’s worth noting that during last year’s stock market crash, this trust held up better than Monks.

One risk to consider is it has quite a high exposure to the financial sector (nearly 25%). If this sector underperforms, it could impact the trust’s performance.

Overall however, I see this as a very solid growth-focused investment trust. Ongoing charges are a very-reasonable 0.50% per year.

Investment trusts offer several important benefits, in my opinion. One is I get to spread a modest sum across a range of actively-managed investments, without worrying about any conflict of interest. Buying the shares makes me a part-owner of the trust, and so its managers are working directly for me.

The other key thing I like is the way investment trusts can manage their dividends. Being able to retain up to 15% of their income in any year, they can build a reserve. And that helps to maintain long-term dividend stability.

Investment trust dividend heroes

I do already hold one, the City of London Investment Trust (LSE: CTY), and it’s just released first-half figures. The Association of Investment Companies (AIC) ranks City of London at the head of what it calls its ‘Dividend Heroes’. That includes all investment companies that have raised their dividends for 20-or-more-years in a row. City of London is in joint first place with Bankers Investment Trust (LSE: BNKR), achieving the feat for 54 consecutive years.

At December 2020, the former trust’s net asset value (NAV) per share stood at 357.4p. That’s up from 344p at 30 June.

Market sentiment appears to have improved. In June 2020, City of London shares were trading at a 1.2% discount to NAV. But the price has picked up since November and, by the end of 2020, it had moved to a 3.7% premium. I still think that’s reasonable value.

55 years of dividend hikes?

But what of my precious investment trust dividends? The company said it’s “confidence that it will be able to increase the dividend for the fifty-fifth consecutive year.” Saying that, the trust did suffer a significant fall in income in 2020, with its revenue earnings per share falling by 15.6%. It’s very tightly tied to the UK market too, so any prolonged economic downturn could hurt both the dividends and the share price.

So, for my next pick, I’ll try to balance my risks. I’m turning back to Bankers Investment Trust. And not just for those 54 years of dividend hikes. While City of London is focused on UK equities, Bankers sets its sights globally. That suits me personally for a couple of reasons. Firstly, I like a bit of global diversity. And, secondly, a chunk of my retirement income is going to be spent overseas, so it might help not to be totally tied to the UK economy.

That would expose me to risks associated with other parts of the world too. And, in many places, markets can be more volatile and subject to weaker regulation. But those are risks I’m prepared to take to fit my personal requirements.

Income vs growth

The dividend yield is only around 2%. But the Bankers Investment Trust share price is up 9% over the past 12 months (while City of London is down 17%, and the FTSE 100 has fallen 10%). Over five years, Bankers shares have more than doubled in price.

Right now, there’s only a modest premium to NAV, at just 0.6%. For my personal circumstances, I think these two really could be the best investment trusts I could buy in 2021.

A quarterly dividend to help with passive income

Merchants Trust (LSE: MRCH) was doing well until Covid-19. This is especially true when you consider that it’s an income-focused trust holding many big names that weren’t flavour of the month. The shares even traded at a premium to their net asset value (NAV). Covid-19 changed this. The shares are now back trading at a small discount of around 3.5% to NAV. Even better for income investors, the dividend yield is over 7%.

The big question is, can this be sustained?

Management are certainly keen to keep the trust’s status as a ‘dividend hero’, a trust that has kept consecutive years of income rises. The trust plans to dip into its savings to protect shareholder payouts this year.

However, this is not sustainable. What is needed is for companies to reinstate their dividends so the trust doesn’t deplete its reserves to pay for the dividend in the short term.

I’m confident this will happen. I would buy Merchants Trust to create a passive income as it holds many dividend-paying companies. The top holdings are GlaxoSmithKline, British American Tobacco, Imperial Brands, BHP Group, and National Grid.

Getting growth from high-flying US tech stocks 

The Bankers (LSE: BNKR) investment trust gives investors something a little different. It has very different holdings than Merchants, with much more of a tilt towards the high-flying, in-favour US tech stocks. Top holdings include Microsoft, Amazon, and Visa.

As a result, the trust has a much lower dividend yield. It currently provides investors with a yield of 2%. The shares in the trust also trade a premium to NAV of around 1.5%. This then is no hidden gem or recovery play. The trust’s shares will need to stay in demand if the share price is to keep going higher.

From a passive income point of view though, it complements Merchants well, as a very different type of trust. The trusts both pay dividends quarterly giving investors a regular cash flow.

I’m pleased to see the Bankers dividend has been rising steadily for the past two decades and I expect this can continue. If the shares fall to a discount to NAV I would be even more tempted to pick some up. It provides both income and growth potential. 

If you wanted to invest directly, companies such as GlaxoSmithKline also pay their dividend quarterly. Biannual dividend payments are far more common. This could also help make sure you can create a passive income while diversifying your investment portfolio.

Income heroes

The most consistent ‘dividend heroes’ can now be named as Caledonia Investments (LSE: CLDN), the Bankers Investment Trust (LSE: BNKR) and JPMorgan Claverhouse Investment Trust (LSE: JCH). These investment trusts have the distinction of raising their dividend by more than inflation every single year — without interruption — for two decades, according to new research from investment platform AJ Bell.

As well as offering consistent dividend growth, Caledonia and Bankers generated a total return of a massive 580.4% and 474.3%, respectively, over the last 20 years, while also increasing dividends by 5.3% and 6.5% a year on average. The beauty of a rising dividend is that it helps you beat the eroding effect of inflation, and give you a steadily growing income in retirement.

I’ve included long-standing investment trusts F&C and Witan in the table below, because they also deserve respect for increasing their dividends by 7.2% and 6% a year, respectively, over the same 20-year period.

Caledonia, which can trace its roots back to 1878, currently has around £2bn under management. It runs a concentrated portfolio of international investments and funds, targeting proven businesses with long-term growth characteristics and the ability to deliver rising income. This is no closet benchmark tracker. Its 10 largest holdings are mostly unfamiliar names to me such as Deep Sea Electronics, Cobehold and Buzz Bingo, although Microsoft was really recognisable at number 10.

As Alan Oscroft recently noted, Caledonia has now increased its dividend for 52 consecutive years, yet it currently trades at a massive discount of 16.3% to net asset value.

Bankers Investment Trust aims to beat the FTSE World Index for capital growth while generating annual dividend growth above the UK retail prices index, again by investing in global listed companies. It’s 30% invested in North American, with slightly less cover in the UK, while the remainder of its £1.17bn portfolio is divided between Europe, Asia-Pacific and Japan.

Mainstream

Here the stock picks are a lot more mainstream, with American Express, Microsoft, Berkshire Hathaway, MasterCard and Visa figuring in its top 10 holdings. The discount isn’t as generous, with just 2.11% to net asset value, but its differing holdings mean it could nicely complement Caledonia in your retirement portfolio.

JP Morgan Claverhouse is a UK equity income fund with a conviction portfolio of between 60 and 80 stocks. It’s also a smaller fund, with £434m under management, and returns are impressive given how the UK has underperformed compared to many global markets. It currently trades at a discount of 4.7% to net asset value.

These three investment trusts could give you all the joys of rising growth and income, with none of the trouble of dealing with buy-to-let tenants.

That’s where investment trusts come in. As they’re allowed to retain up to 15% of the income they earn each year, they can save cash in stronger years in order to keep dividends going in weaker years.

Big dividends

My first pick today is City of London Investment Trust (LSE: CTY), which last year paid out a dividend yield of 4.1%. What’s more, City of London has one of the best records in the business for long-term dividend rises. According to the most recent survey from the Association of Investment Companies (AIC) in March, the trust has lifted its dividend every year for more than 50 straight years.

The share price performance has pretty much kept track with the FTSE 100 over the past five years with only a modest 7% rise, but looking back 10 years, we see a doubling compared to the Footsie’s 70%. I think that reflects the focus on UK investments and the UK economy over the past decade, and the long-term outperformance against the index convinces me there’s quality investment management at the helm.

Net asset value (NAV) per share at the end of April came in at 414p, which matches very closely with the current share price of 413p. Investment trust shares often trade at a discount to NAV, and the absence of a discount here suggests investors are prepared to pay a little more for the long-term reliability of those dividends.

Growth too

My second pick is Bankers Investment Trust (LSE: BNKR), which invests in large and innovative global companies, and counts Apple and Microsoft among its holdings.

Given that focus, it’s perhaps not surprising that the Bankers share price has outperformed City of London’s over the past decade with a a 178% rise. It’s also up 55% over five years, a period when UK investments largely stood still.

Bankers doesn’t offer such high dividend yields, mind, averaging around 2.5% per year in recent years. But they are progressive, and it’s another of the AIC’s ‘Dividend Heroes’ to have upped its annual payment every year for more than half a century.

Even after the trust’s superior five- and 10-year performance, the shares are trading on what I see as an attractive valuation. With NAV standing at 922p per share at 30 April, the current share price of 888p puts the discount at 3.7%. By investment trust standards that’s a low one, and you often see them priced on double-digit discounts, so again I think that represents a high degree of confidence from investors.

Retirement strategy

With smaller investment trusts, a strategy of looking for underrated shares with unjustified discounts can be profitable, though with a little bit more risk — I confess I sometimes have no idea why a trust’s shares sell for so much less than NAV.

But for retirement income, I definitely think there’s a benefit to sticking with the most trusted ones. I see Bankers and City of London fitting that bill, focusing on dividends but with some growth thrown in, and offering a nicely diversified worldwide spread of investments.

It’s what you do with this money that can really make a difference to your retirement fortunes. Saving is just part of the puzzle. You’ve worked hard to earn your money, so your money should be working hard for you.

Save, then invest

The best way to get your money working is to invest. For example, over the past five decades, the FTSE 250 has generated an average annual return of between 7% and 9%. In comparison, today the highest interest rate on offer on cash savings is around 2%.

This performance gap makes a difference when you’re saving for the future. £1,000 invested at 2% will grow into just £2,700 over 50 years. However, if your money is earning 9%, £1,000 will become £88,500 over the same period. In other words, a few percentage points of returns could be the difference between achieving a comfortable retirement and having a nasty shock when it’s time for you to leave the workforce.

With this in mind, I have compiled a list of the five top investment funds that I believe can help you achieve the retirement you want.

There are hundreds of investment funds on the market at the moment, but I have chosen these in particular because I believe they offer the best exposure to vital global investment themes at the lowest cost. As they are mostly equity funds, they are only really suitable for investors with investment horizons of 10 years or more. A short-term bond fund might be more suitable for readers planning to retire in the next few years.

Ready-made portfolio

My first top fund pick is the LifeStrategy 60% Equity Fund. The last time I wrote about this at the beginning of March, I claimed that it was one of the best funds around for investors of all experiences due to its international exposure and ready-made portfolio. I continue to believe this is the case today.

Split 60/40 between equities and bonds, the LifeStrategy fund gives buyers a well-diversified portfolio at the click of a button and with charges amounting to only 0.22% per year, it is significantly cheaper to use this instrument rather than try to build a similar portfolio yourself. The fund invests in markets around the world through other tracker funds, so there’s no risk that the managers will make a bad stock pick.

As the global economy continues to expand, LifeStrategy should produce sturdy returns for investors for many decades to come.

Tech focus 

LifeStrategy should continue to do well as long as the global economy continues to grow. The one downside of the fund is that it lacks a specific focus. The Scottish Mortgage Investment Trust (LSE: SMT) on the other hand, has a heavy tech focus.

Managed by James Anderson since 2000, Scottish Mortgage’s portfolio is dominated by some of the market’s biggest and highest-profile tech stocks including Amazon.com as well as Chinese internet giants Tencent Holdings and Alibaba.

These companies have transformed the world over the past decade, and it is highly likely that they will continue to do so for many years to come. Technology is changing the world in ways few thought possible. It’s making investors extremely wealthy along the way. I believe anyone investing for the future should have some exposure to tech stocks, but in this rapidly changing sector, paying an experienced manager like Anderson to look after your money is probably the best solution.

Growing population 

One of the sectors reaping the benefits from technological advances is the healthcare sector. Medical technology is improving at a faster rate than ever before, helping tens of millions of people around the world. As the world grows, the demand for medical services is only going to expand, and this is why I believe the Worldwide Healthcare Trust (LSE: WWH) is worth adding to your retirement portfolio.

This £1.4bn trust has been managed by Sven H. Borho since 1995, an experienced healthcare investor, who’s investment skill has produced strong returns for investors. Worldwide Healthcare does what it says on the tin. The trust is invested around the world in healthcare stocks. From drugs sector giants such as Merck & Co to medical device manufacturers such as Boston Scientific and niche pharmaceutical companies like Edwards Lifesciences, this trust is a one-stop shop for healthcare investing.

The one downside is that it is a bit on the expensive side with an annual charge of 0.9%. That said, Worldwide’s total return of 148% over the past five years, compared to the biotechnology & healthcare benchmark return of 131%, shows it may be worth paying that little bit extra to access the team’s healthcare experience.

Bricks and mortar 

Property is one of the most stable long-term investments. The TR Property (LSE: TRY) fund is a great way to add exposure to this asset class to your retirement portfolio.

TR Property invests in both listed real estate investment trusts and physical property. What’s more, it isn’t just limited to the UK. Only 43% of assets are invested in UK property. The remainder is invested throughout Europe (including borrowings, total exposure is 113.2%). The largest holding, accounting for around 10% of assets is Vonovia SE, Germany’s leading nationwide residential real estate company managing 355,000 residential properties around the country.

With an annual management charge of 0.8%, TR Property will give you instant exposure to a global real estate portfolio. The dividend yield is 2.9%.

Global champions 

Bankers Investment Trust (LSE: BNKR) is my fifth and final pick. I’ve picked Bankers because it has a record of creating value for investors, with a low fee (0.45%) by investing in some of the world’s largest and most innovative companies. Also, unlike most of the other funds profiled, it supports a modest dividend yield of 2.1%.

Today, the top five holdings are BP, Apple, Microsoft, American Express and British American Tobacco, a broad selection of top performing companies from around the world. There are 191 holdings in the portfolio overall.

Over the past decade, this £1.1bn fund has produced a total return for investors of 180%, smashing its benchmark return (FTSE All-Share) of 94.5% over the same period. As the trust has already been in business since 1888, I’m almost certain this would make a great addition to any long-term investment portfolio.

Today, I’m profiling two investment trusts that could make excellent core holdings for beginner investors. 

Bankers Investment Trust

The Bankers Investment Trust (LSE: BNKR) aims to maximise returns for investors by trading in a diversified portfolio of international shares. The portfolio manager has the flexibility to invest in any geographic region and focuses on companies that generate significant cash flow and pay regular dividends. The trust also aims to pay a regular dividend to shareholders that grow at a rate in excess of RPI inflation.

An analysis of the current portfolio reveals that BNKR has the most exposure to US, UK and Japanese equities. The top sector weightings are financials and technology and the top five holdings include BP, Apple, British American Tobacco, American Express and Microsoft. I like the fact that while this trust has exposure to US stocks, it’s not overly exposed to some of the more expensive tech stocks. 

The trust’s performance over the last five years to the end of February has been excellent, with the net asset value (NAV) rising a healthy 83%. The current dividend yield on the trust is 2.25%, with dividends paid quarterly. Fees are very reasonable, with the ongoing charge a low 0.44%. So overall, I believe this trust is an excellent choice for beginner investors.

Murray Income Trust

Another excellent choice for those looking to keep things simple is the Murray Income Trust (LSE: MUT). This trust places a strong focus on income/dividends and aims to provide investors with a high and growing income stream, along with some capital growth as well. It invests predominantly in UK equities although it does have the flexibility to invest 20% of its assets in international stocks.

Looking under the bonnet, the trust currently has an 83% weighting to UK stocks, with smaller allocations to counties such as Switzerland, Sweden, Denmark and the US. The largest sector weightings here are financials and consumer defensive with the top five holdings including Unilever, AstraZeneca, British American Tobacco, Prudential and Royal Dutch Shell.

The Murray Income Trust also pays dividends on a quarterly basis and the current yield is a healthy 4.5%. Over the last five years to the end of February, the portfolio’s net asset value (NAV) increased 39%. Ongoing fees are reasonable at 0.72% per annum.

It’s worth noting that this trust currently trades with a discount of 7% to the assets in the portfolio. As a result, I believe now could be an excellent time to add the trust to an ISA.

Even during the recent financial crisis, when many companies were forced to cut their dividends or even stopped payouts altogether, many investment trusts managed to continue to increase their shareholder payouts. As such, there are a number of trusts with multi-decade-long track records of rising payouts today.

Why?

This is because investment trusts, unlike many open-ended funds, are not required to pay out all of the dividends generated by their underlying equity portfolios. They can hold back up to 15% of the dividend income they earn to supplement payments to shareholders in leaner years, smoothing out their dividend payments over the long term.

And following a rule change in 2012, investment trusts now have even more flexibility. They are even allowed to fund dividends out of capital returns, meaning that should their revenue reserves run out, they can sell some of their investments to make dividend payments.

Inflation-beating dividend growth

The £1bn-plus Bankers Investment Trust (LSE: BNKR) has one of the longest track records of consecutive years of dividend increases, with 50 years under its belt, according to data from the AIC.

Although shares in the investment trust yield just 2.2%, a major attraction of Bankers is its dividend growth. Not only does it plan to raise dividends each year, but it is targeting inflation-beating regular dividend growth of more than the rise in the Retail Price Index.

The trust also aims to achieve long-term asset growth in excess of the FTSE All-Share Index by means of its flexible investment approach and broadly diversified international equity portfolio. Big multinationals dominate its portfolio, with BP (1.8%), Apple (1.7%), British American Tobacco (1.5%), American Express (1.5%), and American Tower (1.4%) being its top five positions.

Performance figures for the past five years are encouraging as shares in the fund delivered a total return of 123%, easily beating its benchmark index performance of just 63%.

Diverse range of investments

Caledonia Investments (LSE: CLDN) became the latest trust to reach the impressive milestone of 50 years of consecutive dividend increases earlier this year.

Unlike Bankers, Caledonia is self-managed and owns a very diverse range of underlying investments. And one thing which really sets the it apart from many of its peers is that it invests around 27% of the value of its portfolio value in unquoted companies, which gives those trusting it with their cash exposure to a sector which is generally reserved for private equity investors.

Despite its strong dividend growth record, Caledonia trades at a rather big discount to its net asset value (NAV). Although this is partly due to the difficultly in valuing its unlisted equity investments, recent moves made by the fund manager should allay some of the concerns.

The fund recently sold down some of its unquoted investments, including a £197m stake in Park Holidays, in order to realise value for shareholders. And with the proceeds of the sale, it paid a special dividend of 100p per share in August, demonstrating that it is a shareholder-friendly fund.

At its current share price, Caledonia Investments currently trades at a 19% discount to NAV, with a regular dividend yield of 2%.