Monthly income
Comments
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Hmm, the more I look at IT's the less appealing they seem to get to my uneducated eyes.
http://citywire.co.uk/wealth-manager/investment-trusts/best-investment-trusts-by-sector.aspx?CitywireClassID=49&TimePeriod=12
Generally they seem to have significantly higher charges, lower (quoted) yields and only slightly higher if at all performance figures. On top of that is the added layer of volatility from their share price as they fall in and out of favour.
Am I just looking at the wrong things?'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
From your shortlist, I hold the following - I have highlighted the ones I would recommend for starters.
Aberdeen Asian Income Trust
Aberforth
Bankers
City of London Trust
Dunedin Income & Growth
Edinburgh
Finsbury Growth and Income Trust
Invesco Perpetual Income & Growth IT
Law Debenture
Murray Income Trust
Murray International Trust
Temple Bar
Prices have risen quite a bit in recent months so it may be prudent to drip money in over a period but I think they should all do well over the longer term (10 years+)
Good luck!0 -
Hmm, the more I look at IT's the less appealing they seem to get to my uneducated eyes.
http://citywire.co.uk/wealth-manager/investment-trusts/best-investment-trusts-by-sector.aspx?CitywireClassID=49&TimePeriod=12
Generally they seem to have significantly higher charges, lower (quoted) yields and only slightly higher if at all performance figures. On top of that is the added layer of volatility from their share price as they fall in and out of favour.
Am I just looking at the wrong things?
These two have Woodford for a manager and currently have similar holdings.
Edin and Invesco Perp High Income.
The return shown on trustnet charting suggest total returns of 117% v 65% respectively over 5 years.
Sorry chart/data won't link or copy."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
John, have you read any IT stuff on TMF? If not, try this:
http://boards.fool.co.uk/basket-of-seven-annual-review-2013-12828989.aspx?sort=whole
http://boards.fool.co.uk/b7-12833848.aspx?sort=whole0 -
Thanks again for a good read, I am aware that my list up thread is extremely ugly, it's just a quick, fairly random collection of some trusts that appear at the top of league tables, online portfolio blogs and various websites "best" lists.
I'm aiming at this stage to invest a ballpark £4K in each of my chosen trusts, making a selection similar to the B7 portfolio linked by TCA (which I have read before briefly) but with nine or ten trusts and lower allocations to some property trusts. Reason for more than one being to try and regulate the income stream if not the actual risk.
I'm still reading and have a broad sense of what I want to achieve but not the technical detail of how best to do that. The discount / premium aspect is an added complication but if I can make approximately the right choices initially, that shouldn't have any great significance longer term since this portfolio is intended to be held forever and hopefully provide a worthwhile and growing income stream .
I expect the transfer to take a good few days yet so plenty time to whittle down a final selection list. Will post my muddles in a day or two.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
John, If you truly aren't sure what to do then I'd recommend drip feeding into some and or set up a virtual portfolio somewhere. HL one is good but doesn't take into account income. 'Google finance' portfolio adds dividends up in real time.Solar PV cost £5760 (15/03/13)
FIT inc + Electricity saved £3746 (65% Paid back) Tax free
Last update 30/09/170 -
All funds in your original list focus exclusively on the UK.
Your later list includes international ITs but later you say that you are not so keen on them. So what about these international income UTs:
M&G Global Dividend Fund A Income yielding 3.54%
Schroder Asian Income yielding 4.55% and
Newton Global Higher Income yielding 4.29%
All yields are approximate.
As for your UK income list have you considered Artemis Income Fund Class R Distribution yielding 4.6%?
Do your own research on these funds as they are only suggestions.Take my advice at your peril.0 -
The thing I'm absolutely sure about is wanting to get this money invested in a moderate growth portfolio that pays a sizeable but sustainable income, the more the better, obviously, but sustainable.. and the sooner the better.
Once the transfer lands I'm in a position of losing income on it and I'm not prepared to lose the ISA wrapper so it'll need to have something done with it pretty sharpish.
So far this is what I'm looking at and trying to pick suitable candidates. I admit I'm struggling to see any obvious choices, especially as the yields seem rather low when compared with a great many UT offerings costing the same or less.
The IT premium is an irritation too. I may well end up just purchasing 2 or 3 trusts on the lists and plough the rest into UT investments. Then see how things start to play out with a view to transferring/purchasing more IT later.
The other thing putting me off IT slightly is the transaction costs, whereas UT can be bought and sold as often as deemed necessary without any additional transaction costs.
I won't "need" the income initially but the plan is to have it (the regular monthly income) available for disposal in the near future.
..bed time'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
The other thing putting me off IT slightly is the transaction costs, whereas UT can be bought and sold as often as deemed necessary without any additional transaction costs.
Why would you want to keep chopping and changing your holding if you follow the right strategy in the first place?
Some UTs like Artemis, Old Mutual have buy sell spreads. Some have less transparent charges like dilution levies. With the deal lag you may not get the price expected so there are other costs to UT dealing not just bad timing decisions.
Some types of IT aren't available in an UT guise.
X-O is £5.95 a trade."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I really want these all on Charles Stanley, that means a steep £10 dealing charge currently on stock purchase/sale unfortunately.
I'm not planning to do any chopping and changing, regular or otherwise, but clearly having that option available is sensible, be it profit taking or rebalancing if things get stretched.. obviously with IT that comes at a significant cost for smaller sums where no such direct costs are involved with (most) UT transactions.
I don't want to (meaning I am) get too bogged down in the minutia of the selection process, I'm going to read the thread and various websites again a few times before taking the plunge, then just make a selection. The reason for including a larger number of similar IT and UT selections is mainly to regulate the income stream.
Right now the "short" list is looking something like this, still in progress but aiming for a final selection of probably 10 to 12, with £3K in each.
Aberdeen Dunedin Income & Growth
Henderson City of London
Aberdeen Murray Income
Schroder Income Growth
Invesco The Edinburgh
Invesco Perpetual Income & Growth
F&C Capital and Income
JPM Claverhouse
Aberdeen Asian Income
Aberdeen Murray International
London & St. Lawrence
HICL Infrastructure
F&C Commercial Property
John Laing Infrastructure
Amber International Public Partnerships
The likes of Lowland, Bankers, Finsbury just don't seem to be offering the sort of yields I'm looking for in this process, I'm all ears for opinion about that though. I realise quoted yields mean very little without reference to underlying capital growth.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0
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