The top trusts for income

Last month JPMorgan Cazenove highlighted what is undoubtedly one of the key benefits of the closed ended structure – the ability to build up revenue reserves for a rainy day and use them to smooth dividends. It reported that the highly regarded Newton Higher Income open-ended fund had cut its forward dividend target by 20%-25% due to concern that, in this environment, supporting the current dividend would increasingly affect the fund’s overall return to investors. Therefore a reduced dividend target will give the manager increased flexibility to invest across a spectrum of UK equities...