The Motley Fool

These 2 global dividend investment trusts could help you retire early

Global dividend investment trusts can be a great way of generating income in retirement, but are all too often overlooked. These two could give your pension pot a real boost.

Desperately seeking Alpha

Investment trust Apax Global Alpha Ltd (LSE: APAX) is one of the highest yielding funds I have seen, currently paying 5.65% a year, according to Launched in June 2015, it invests in a portfolio of funds run by Apax Partners, with 59% in private equity and 41% in derived investments.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

The £729m trust has just published its quarterly results to 30 September which show adjusted NAV dipping by €26.2m to €881.9. However, this was primarily down to the generous semi-annual dividend of €23m paid in the quarter and negative FX effects of €20.5m. The portfolio delivered a total net asset value (NAV) return of 2% on a constant currency basis. 

Apax predator

Apax Global Alpha offers a broad global spread as it is 48% invested in the US, 31% in Europe, 10% in India, 4% in the UK and 2% in China. Trustnet shows a return of 8.3% in the last year, against 18.2% for the private equity postmark sector, so it is definitely lagging.  It trades at a discount of 9.67%, which might suggest it is a bargain, or maybe that investors reckon performance could be better. Income of getting on towards 6% is not to be scorned though, especially as you near retirement.

Henderson presents

I am more excited by Henderson International Income Trust (LSE: HINT), recently highly commended in the Money Observer investment trust awards 2017. Launched in 2011, this global trust could balance your UK equity income holdings quite nicely because it excludes this country to focus on three regions: North America, Europe, and the Far East, none of which can account for more than half of its investments.

Big names abound in its portfolio, with Microsoft, Novartis, Roche and Coca-Cola featuring in the top 10. It cannot invest more than 5% in any single company. The trust aims to be a core savings product and manager Ben Lofthouse’s performance has been good, with Trustnet showing growth of 58% over the past three years, against 50% across the global equity income sector, and 85% over five years, slightly trailing its sector return of 90%.

Premium trust

This week’s annual results to 31 August showed the trust achieving double-digit total returns, with NAV per ordinary share up 18.8% and the ordinary share price jumping 19.3%. This compares to a total return of 19.1% for the MSCI World (ex UK) Index. Management lifted the dividend 5.4% from 4.65p to 4.90p a share, giving a current yield of 3%. 

Henderson International Income trades at a narrow discount of just 1.28%, with the board happy to see it reverting to trading at a premium and stating that it will implement share issues or buy-backs to keep it roughly in line with its peer group. The yield is a little below its sector average, but NAV total returns are well above. You could quite happily buy and hold this fund for the next 25 years.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.