4 popular trusts for income

One of the notable trends on the Fidelity Personal Investing platform this year is the popularity of investment trusts that offer an attractive yield. These have the potential to provide investors with a resilient and reliable source of income that could increase in line with or ahead of inflation.

• Read: Top 10 best-selling investment trusts of 2025

Investment trusts have more flexibility over their distributions than open-ended funds as they have the scope to set aside up to 15% of their annual income in their revenue reserves. This could result in a lower dividend in any given year but gives them the ability to build up a safety net that might allow them to smoothly grow the payments over time.

• Read: Funds vs investment trusts: 4 key differences explained

International Public Partnerships

One of the most popular options is International Public Partnerships Ltd (INPP), which is a member of the Select 50 list of handpicked funds. It owns a portfolio of essential, low risk infrastructure such as schools and hospitals, transport and renewables, which are mostly held in partnership with the government and generate steady, inflation-linked earnings.

The majority of the shareholder returns have come in the form of dividends that have increased every year since the listing in November 2006. A target payment of 8.58p per share has been announced for 2025 that is equivalent to a prospective yield of 6.9%, although this is not guaranteed.

Like many other investment trusts, the shares are currently trading on a wide discount to net asset value (NAV) of 15%. This is despite the fact that INPP has sold over £315m of assets in the last 24 months at or above book value, with some of the cash being used to fund share buybacks as part of the £200m programme that runs until 31 March 2026.¹

• More on International Public Partnerships

City of London

Another trust that Fidelity Personal Investing customers have been buying is City of London, which mostly invests in large dividend-paying companies listed in the UK. Longstanding manager Job Curtis has a prudent approach that has enabled it to increase its annual distributions in each of the last 58 years, thereby earning a place at the top of the Association of Investment Companies’ list of dividend heroes.

City of London has built up a good long-term track record and over the 10 years to the end of May its share price total return was comfortably ahead of the FTSE All-Share benchmark². Dividends form an important part of this with the shares currently yielding 4.5%, although the yield is not guaranteed.

The attractive stream of income, consistent total returns and low ongoing charges of just 0.37% have meant that the shares have remained in high demand³. This has enabled them to consistently trade close to the trust’s net asset value (NAV).

• More on City of London Investment Trust

JPMorgan Global Growth and Income

A more international exposure is available from JPMorgan Global Growth and Income, which invests in a high conviction portfolio of 50 to 90 companies from around the world. Its global best ideas strategy has been designed to deliver capital growth alongside an attractive and predictable quarterly dividend, with the managers able to draw on the local proprietary analysis of JPMorgan’s extensive international research team.

The popular trust has a successful long-term track record and is unusual as it sets the distributions at the start of its financial year, with the aim being to pay at least 4% of the NAV at the date of the accounts⁴. In the reporting period that ended on 30 June 2025 it declared total dividends of 22.8p per share and the plan is to increase this to 23p for the current year, giving the trust a prospective yield of 4.1%. Please note this yield is not guaranteed.

JPMorgan Global Growth & Income has consistently retained a premium rating and is one of the largest issuers of new shares in the recent past. It is currently available at a small discount to NAV of around 2%.

• More on JPMorgan Global Growth and Income

Greencoat UK Wind

Another best-selling income generating trust is Greencoat UK Wind, which owns 49 operational wind farms located across the United Kingdom. It aims to provide shareholders with a sustainable annual dividend that increases in line with retail price index (RPI) inflation, while preserving the portfolio's capital value on a real basis by reinvesting the excess cash flows.

In the financial year to 31 December 2024 the trust paid total dividends of 10p per share that were fully covered by earnings. The Board has announced that it will target a payment of 10.35p for 2025, which based on the current price of 125p gives the shares a prospective yield of 8.3%, although this is not guaranteed.⁵

Wind farms are difficult assets to value and are highly sensitive to changes in the underlying assumptions about things like future power prices and inflation. The latest estimated net asset value (NAV) is 150p, which suggests that the shares are trading at a 17% discount despite the active share buyback programme. Investors will get a better idea on 30 July when the latest figure will be released with the half-year accounts to the end of June.⁶

• More on Greencoat UK Wind
• Find out more about investing in investment trusts

Source:

¹ Deutsche Numis Investment Companies Research, 8 July 2025
² Source: City of London Trust, factsheet 31/5/25
³ Fidelity International, 21 July 2025
⁴ Source: JPMorgan Global Growth & Income, factsheet 30/6/25
^5,6 Greencoat UK Wind, 27 June 2024

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing, please read the relevant key information document which contains important information about each investment trust. The shares in these investment trusts are listed on the London Stock Exchange and their price is affected by supply and demand. Investment trusts can gain additional exposure to the market, known as gearing, potentially increasing volatility. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Select 50 is not a personal recommendation to buy or sell a fund. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.