Global Investment Trusts

MPN · 24 July 2017 at 3:11PM

My wife and I are about to each invest our £20K ISA allowance for this year and would like to add to our global exposure. We currently hold Lindsell Train and Fundsmith as our global funds and whilst we are very happy with them we feel we would like to diversify a bit more into Global IT's which have different holdings.

We did consider Scottish Mortgage IT but on reflection feel this is too volatile for our liking so I was thinking of investing £10K each into Witan and Monks and my wife would rather have Bankers and either Brunner or Caledonia (these last 2 because of the current discounts on offer).

Does this seem realistic or is holding 4 different global funds/IT's in our ISA portfolio a bad idea and too excessive? I would appreciate any thoughts or opinions on this especially from experienced IT investors. Thanks.

sorcerer · 24 July 2017 at 3:23PM

TBH, their is nothing wrong with any 4 of those investments trusts. If you are at odd's, why don't you choose one you like and one she likes.

Happy wife, happy life. :j

atush · 24 July 2017 at 3:36PM

I have been using Witan for a while now, and am happy.

StellaN · 24 July 2017 at 5:58PM

I can't really see anything particularly wrong with investing in a varied number of global funds/ IT's so if you and your wife want to each hold 4 different funds/IT's that have a diverse range of holdings etc then do that. I personally now only have two global holdings Scottish Mortgage IT and Fundsmith.

ColdIron · 24 July 2017 at 7:01PM

I've had Bankers for a number of years and have recently added it to my SIPP. It's probably one of the best dividend payers of the bunch (which it has increased for 50 odd years) so be sure to reinvest them. It trades at a discount right now and has a low ongoing charge. If I was looking for growth Witan would be on my radar. If you don't want to hold all five of them Trustnet has a correlation tool so you could plug them in and whittle out one or two with the most overlap if you want

dividendhero · 24 July 2017 at 7:19PM

A few more global IT's to put on the watchlist

Murray International
Henderson International
Foreign & Colonial

The first two are good yielders, while F&C holds distinction of being oldest IT in the land with a good record of total return

bowlhead99 · 24 July 2017 at 7:29PM

Just a thought - in the OP you mention you were looking for things with different holdings/ "asset allocations". But these are substantially all invested in global equities albeit with different approaches.

Perhaps something like Caledonian which has some third party managed funds investment (in both public and private equities), some direct quoted investments (a portion being targeted to deliver income) and even some direct unquoted Investments, is a type of trust that gives you more variety than something like Bankers or Monks who are more from the mindset of picking their own global listed stocks - which is something that Fundsmith and Lindsell Train are already doing for you albeit with a different regional or sector bias.

If you are thinking about "asset class" allocation - ie across asset classes such as bonds, property, hedge/AR, public and private equities, rather than simply the allocation to geography or sectors within global equities - then maybe consider something like RIT Capital Partners which is usually quite widely diversified and more conservatively positioned compared to the 100% equity funds and trusts.

Though I appreciate that throwing out names of other trusts when you're already trying to narrow down between four, may not be totally helpful

dividendhero · 24 July 2017 at 7:33PM

RIT and Caledonian share a similar heritage in that they secure the funds of "old money" families. The Rothschilds and Cayzers respectively..

Audaxer · 24 July 2017 at 10:15PM

ColdIron wrote: »

I've had Bankers for a number of years and have recently added it to my SIPP. It's probably one of the best dividend payers of the bunch (which it has increased for 50 odd years) so be sure to reinvest them. It trades at a discount right now and has a low ongoing charge.

But if buying now the yield on Bankers IT is only about 2.2%.

ColdIron · 24 July 2017 at 10:31PM

If you look at the existing funds and the ones on the shortlist I don't think the OP is looking for yield, hence the reinvestment suggestion

Audaxer · 24 July 2017 at 11:03PM

ColdIron wrote: »

If you look at the existing funds and the ones on the shortlist I don't think the OP is looking for yield, hence the reinvestment suggestion

Fair enough. I had assumed that as you have had Bankers IT for a number of years, the yield was possibly a lot higher when you bought it, so I was thinking you would be getting good rising percentage of income based on your original investment?

Global Investment Trusts

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