True value inhedging

In 2000, economic conditions and the UK equity market had changed considerably from 10 years earlier. Retail price inflation, 9.5% in 1990, was down to about 2%; clearing bank base rates were down from 15% to about 6% and the yield on the All-Share Index had fallen from 5% to below 2.5%. The yields on the three high-yield trusts managed by Glasgow Investment Managers had also fallen ' Shires Income to 4.3%, Glasgow Income Trust to 4.6% and Shires Smaller Companies to 4.4%. These yields were high relative to the All-Share Index yield but they were not competitive with those on other invest...