Specialist debt funds, available through investment trusts, offer UK private investors access to complex debt that would usually be available only to institutional and high-net-worth investors. These funds have an average dividend yield of around 10%, which reflects their trading at double-digit discounts to net asset value.
16 specialist debt funds offer 10% average dividend yield
UKPulse Money DeskUK private investors can access complex debt through specialist investment trusts, offering an average 10% dividend yield.
- There are 16 specialist debt funds with a total capitalisation of £5.2 billion
- The average dividend yield of these funds is around 10%
- Most of these funds are trading at double-digit discounts to net asset value
Why this matters: These funds provide a potentially attractive income opportunity for investors willing to take on the associated risks.
What this means for you: If you're considering investing in debt funds, be aware that fees can be high, and the funds may not be suitable for all investors.