In this article we have put together what we consider to be six of the best high-yielding investment trusts on offer. To spread the investment risk, we have chosen two equity-based funds, two bond-based funds and two alternative-based funds. We have also tried to avoid concentration risk by picking a mix of UK and internationally-focused funds.
At the start of this year, investors expected global interest rates to move steadily lower aided by falling inflation. Instead, due to the Middle East crisis, rates look set to stay where they are or in some cases move higher.
Meanwhile, the yield on equities has fallen as share prices have risen and companies have diverted surplus cash towards buybacks. At the same time, bond yields have risen with almost every 10-year government bond now yielding 5% or more. In the UK, the FTSE 100 dividend yield is just 3.2% while 10-year gilts yield 5.4% today.
For those looking for income from their investments, that means it’s time to start researching high-yielding trusts. The important thing here is to ensure yields are sustainable and not a sign of distressed valuations.
As always, past returns are no guarantee of future performance and you should do your own research. The funds below are simply six we consider to have attractive and sustainable yields, and are not recommendations.
Equity Investment Trusts
CT Managed Global Portfolio Trust Income (LON:CMPI)
Price: 130p
Fund size:
Dividend yield: 6.1%
Managed by Columbia Threadneedle’s Adam Norris and Paul Green, CT Global Managed Portfolio (LON:CMPI) aims to be a long-term savings vehicle. The trust consists of two share classes. CMPI aims to deliver a growing income alongside capital appreciation, whereas CMPG focuses solely on maximising capital growth.
Once a year, shareholders can switch between share classes at net asset value (NAV) without incurring UK capital gains tax. This means shareholders who don’t invest through a tax-exempt account can adjust their investments as needed without triggering a tax liability.
Sharesify believes the income shares should appeal to dividend-hungry investors keen to beat inflation. This class offers a 6.1% yield, and over the last three financial years the total annual dividend has increased by 9%.
That is ahead of UK CPI of 8.4%. Furthermore, the trust intends to move from quarterly to monthly dividends from June 2027. This will better align dividend payments with income shareholders’ day-to-day finances.
The main aim of the income portfolio is to deliver a regular, growing income by owning a selection of investment trusts. Crucially, dividends are derived from a wide range of sources. The portfolio provides exposure to a broad spread of geographies, sectors, investment styles and investment managers.
As at 31 August, the income shares’ top 10 holdings included JPMorgan Global Growth & Income (LON:JGGI), Murray International (LON:MYI) and Law Debenture (LON:LWDB). Across both portfolios, the managers have added to Asia and emerging markets, where they see attractive valuations and strong earnings growth potential.
A recent addition to both portfolios is Invesco Asia Dragon (LON:IAD). This trust is AIC Asia Pacific Equity Income sector’s second-best 10-year performer whose attractions include an enhanced dividend policy. The trust pays four equal quarterly dividends which total 4% of the previous financial year’s closing NAV.
Henderson Far East Income (LON:HFEL)
Price: 271p
Fund size: £640 million
Dividend yield: 9.2%
At north of 9%, Henderson Far East Income (LON:HFEL) offers the highest yield in the AIC Asia Pacific Equity Income sector. The £640 million cap trust is also closing in on full AIC ‘Dividend Hero’ status, having increased the dividend for 18 consecutive years.
HFEL’s high and growing yield is popular with income-hungry investors, as reflected in a share price premium to NAV. This premium has enabled HFEL to issue shares, which alongside strong absolute performance, has boosted the size of the trust and resulted in promotion to the FTSE 250 Index earlier this year.
Janus Henderson’s Sat Duhra has assembled a portfolio of value-oriented Asia Pacific equities. HFEL offers a balance between traditional dividend-paying stocks on high yields, found in sectors such as telecommunications, energy, and financials, as well as more growth-focused companies bringing exposure to exciting tech names in Asia.
At the last count, the top 10 holdings spanned everything from Korean tech titans Samsung Electronics (LON:SMSN) and SK Hynix (NASDAQ:SKHY) to Brilliance China Automotive (HKG:1114), Taiwanese chip champion Mediatek (TPE:2454) and Chinese electrical appliance maker Midea (HKG:0300).
Sharesify views this trust as a savvy way to play Asia’s improving dividend picture, driven by good capital discipline and increasing revenue, as well as regulatory changes from regional governments designed to boost shareholder returns.
It is worth noting that Duhra has the ability to write options as part of a dividend overlay strategy, which generates additional income for the portfolio and supports the trust’s plump yield. HFEL’s high dividend is also well supported by reserves, which means the board should be able to continue raising the shareholder reward for years to come.
Bond investment trusts
CQS New City High Yield Fund (LON:NCYF)
Price: 50.7p
Fund size: £387 million
Yield: 8.9%
Managed by a highly experienced team, New City High Yield (LON:NCYF) aims to deliver a high level of income alongside capital growth. The fund invests mainly in high-yielding fixed income securities, including corporate bonds, with a disciplined approach to risk management.
The portfolio is actively positioned to identify attractive opportunities across global markets, although most of its investments are in sterling.
As of August, the portfolio was 85% invested in fixed income and 15% in convertibles, equities and preference shares. Among the top 10 holdings were securities issued by Barclays (LON:BARC), Royal London, Shawbrook Group (LON:SHAW) and Stonegate Pubs.
The NAV return is 9% over one year, 39% over three years, 46% over five years and 104% over 10 years. Meanwhile, the shares have returned 8.6% over one year, 51% over three years, 44% over five years and 98% over 10 years.
In line with its aim to provide investors with a consistent and sustainable income stream, dividends are paid quarterly. As of August, the £387 million fund offered a dividend yield of 8.9%, making it a popular income choice.
It’s worth noting New City High Yield is another trust on the verge of joining the AIC’s ‘Dividend Hero’ list. Since it was launched in 2007, it has raised its payout every year for 19 years.
In May 2026, the board announced the appointment of Darren Toner as co-portfolio manager alongside Ian ‘Franco’ Francis. Toner is a senior fund manager for high yield, investment grade and financial strategies and has worked with ‘Franco’ for 15 years.
Sharesify regards New City High Yield as a reliable, well-diversified high-yield proposition for income investors. Toner’s appointment means the trust is in good hands when ‘Franco’ steps back from day-to-day management next year.
TwentyFour Select Monthly Income Fund (LON:SMIF)
Price: 84.6p
Fund size: £315 million
Yield: 8.7%
Our second fixed income pick takes a distinct approach to generating above-average income for investors. TwentyFour Select Monthly Income (LON:SMIF) targets securities which are typically too illiquid for open-ended funds with daily withdrawals.
By identifying this ‘illiquidity premium’ and using a risk-adjusted strategy, the trust is able to generate very attractive returns. In addition, as its name suggests, it pays dividends monthly offering investors an almost real-time compounding opportunity.
At launch, the fund had a target net total annual return of 8% to 10% of the 100p issue price. This comprised a target dividend payment of 6p per year and capital growth of 2p to 4p.
Although there are no guarantees, the 6p per share annual dividend target has consistently been met. Over the last three years, the shares have delivered an average total return per year of 13.5%, well above its target.
Most of the portfolio is invested in fixed income issued by banks and insurers, and in asset-backed securities. Top 10 holdings as of August included high-quality issuers such as Barclays, Credit Agricole, Deutsche Bank, Nationwide, Shawbrook and Unicredit.
The fund also takes an ESG approach which helps it mitigate sustainability risks. This is particularly important as the impact of climate change begins to be reflected in credit quality and insurance risk.
Alternative investment trusts
Schroder Real Estate Investment Trust (LON:SREI)
Price: 40.4p
Fund size: £384 million
Dividend yield: 8.7%
We believe Schroder Real Estate Investment Trust (LON:SREI) is one of the most compelling property stories in the market. Besides its attractive yield, the fund is trading at an unusually wide discount to gross and net asset value (NAV).
Prior to this summer’s acquisition of a portfolio of assets from Picton, gross assets were £475 million and NAV was £298 million. Following the Picton deal, gross assets have risen to £857 million and NAV has risen to around £575 million.
In other words, the trust is trading at a 55% discount to gross assets and a 33% discount to NAV. We suspect this is because the market has yet to appreciate the synergies and advantages of the Picton deal.
SREI has maintained its portfolio weighting to high-quality industrial property assets and retail warehousing. The weighting to offices is also broadly unchanged, while retail and other assets has shrunk. Meanwhile, the reversionary yield on the portfolio has ticked up to 8.4%.
From 32 assets with net contracted rent of £31 million, the portfolio now consists of 54 assets with rent of £51 million. At the same time, the Loan to Value has fallen to 32%.
For the managers, the Picton deal not only creates a larger asset base but brings more retail investors onto the register, balancing its institutional stakeholders. For retail investors, SREI now offers increased scale, lower ongoing costs through synergies and reduced manager fees.
Greencoat UK Wind (LON:UKW)
Price: 114p
Fund size: £4 billion
Dividend yield: 9.5%
As well as having one of the largest wind farm portfolios, Greencoat UK Wind (LON:UKW) is the largest listed renewable infrastructure fund. It offers investors the opportunity to participate directly in the ‘energy transition’ by owning generation assets.
The fund aims to provide investors with an annual dividend which grows in line with inflation while preserving capital in real terms through the reinvestment of excess cash flow. The current yield of 9.5% is one of the highest in the investment trust universe.
The company owns 49 wind farms, of which 57% by value are onshore and 43% are offshore. Total generation last year was around 5,400 GWh (gigawatt-hours) or the equivalent of two million UK homes.
Long term, UK electricity demand is set to double by 2050, and renewables are the cheapest and easiest form of generation to deploy. Wind is expected to be the dominant technology in the build-out, providing opportunities for further scale.
In H1, Greencoat’s electricity generation was above budget while net cash generation meant the dividend was almost twice covered. This was after the company reinvested in the business, while full-year cash generation is seen hitting the top end of guidance.
We believe Greencoat is a proven operator with low business risk and the potential to keep growing. As it does, so shareholders will benefit from growing cash flows and the high level of payout.
Finally, since its IPO in 2013 the fund has raised its payout every year making it a future contender for ‘Dividend Hero’ status.
Disclaimer: Ian Conway owns shares in Greencoat UK Wind, New City High Yield and TwentyFour Select Monthly Income.
