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  • FIRST POST
    • StellaN
    • By StellaN 26th Feb 17, 9:56 AM
    • 178Posts
    • 52Thanks
    StellaN
    Investment Trusts
    • #1
    • 26th Feb 17, 9:56 AM
    Investment Trusts 26th Feb 17 at 9:56 AM
    I would like to diversify my mainstream global investments. I currently hold Artemis Global Income, Newton Global Income and Fundsmith in my portfolio.

    I am looking to include a global Investment Trust and was looking at 2 options - a) Scottish Mortgage or b) Witan. Obviously, most people are aware of SMIT and its track record but the Trustnet risk score is around 135 whereas Witan is around 85 - why is there such a difference in risk exposure between these two trusts?

    Also, is there any other global trusts that anybody has invested in and experienced?
Page 5
    • cloud_dog
    • By cloud_dog 18th May 17, 3:50 PM
    • 3,169 Posts
    • 1,699 Thanks
    cloud_dog
    I'm looking to invest in some IT's and doing some research on this, however I would like to ask for some views on investing in different geographical regions.

    For instance, some posters on this forum seem to hold several (3 or 4) UK Equity IT's - is this purely to receive the dividends for income? I don't require any income at the moment so I'm only interested in re-investment/growth at this stage.

    Also is it best to only have one IT in each geographical region (maybe with the exception of UK for income)?
    Originally posted by Sally57
    Didn't you go through this region / cross over discussion in your Investment Trusts or OEIC's thread????
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Sally57
    • By Sally57 18th May 17, 4:03 PM
    • 86 Posts
    • 18 Thanks
    Sally57
    Didn't you go through this region / cross over discussion in your Investment Trusts or OEIC's thread????
    Originally posted by cloud_dog
    I suppose I would just like to clarify the point about IT's in the UK Equity sector. Do people generally hold more than one in the UK sector purely because of the dividend for income?
    • ColdIron
    • By ColdIron 18th May 17, 4:26 PM
    • 3,378 Posts
    • 3,957 Thanks
    ColdIron
    I'm not sure if it helps but I have 3 UK equity ITs that I hold for income, I've also got 3 non equity UK ITs for the same. But like OEICS and ETFs there are UK ITs that focus on growth if that's your objective. Personally I use global ITs, also for income, rather than try to build a portfolio of individual regions. The closest I have for a region specific focus is Henderson Far East Income (HFEL), I like the 5.6% dividend and it covers countries not always well represented in the others I hold
    • Linton
    • By Linton 18th May 17, 4:29 PM
    • 8,215 Posts
    • 8,087 Thanks
    Linton
    ITs are just another type of fund. Its a bit odd saying you want to invest in them and then asking which ones should you get. It makes much more sense to me for you to say you want to invest in, say, the UK for growth, what funds are available. Some may be UTs/OEICs, others ETFs and some may be ITs.

    I see ITs generally as highly managed niche products perhaps with a pronounced house investment style and objectives other than "beat the index". Income is often a significant objective. If the niche, the objectives and the style fit in with your objectives and wider portfolio then fine. UTs/OEICs are a better place to look if you want to create a broad geographically balanced growth portfolio.

    In any sector there are relatively few ITs and many of the sectors are industry or asset type rather than geography based, so just look on Trustnet for the sectors that interest you.
    • Sally57
    • By Sally57 19th May 17, 10:45 AM
    • 86 Posts
    • 18 Thanks
    Sally57
    I'm not sure if it helps but I have 3 UK equity ITs that I hold for income, I've also got 3 non equity UK ITs for the same. But like OEICS and ETFs there are UK ITs that focus on growth if that's your objective. Personally I use global ITs, also for income, rather than try to build a portfolio of individual regions. The closest I have for a region specific focus is Henderson Far East Income (HFEL), I like the 5.6% dividend and it covers countries not always well represented in the others I hold
    Originally posted by ColdIron
    Thanks for that ColdIron so my conclusion is that most people tend to hold UK Equity Income IT's for the dividends/income.

    I only hold two IT's at the moment Fidelity Asian Values and F&C for my Global IT. I amn currently looking at an IT for Europe and am researching Jupiter Special Opportunties, Fidelity European Values and Henderson European Focus Trust but have yet to make a decision.

    I'm happy to stick with OEIC's in the other regions.
    • ColdIron
    • By ColdIron 19th May 17, 12:25 PM
    • 3,378 Posts
    • 3,957 Thanks
    ColdIron
    Thanks for that ColdIron so my conclusion is that most people tend to hold UK Equity Income IT's for the dividends/income.

    I'm happy to stick with OEIC's in the other regions.
    Originally posted by Sally57
    That wouldn't be my conclusion

    If you're looking for income then UK equity income is an obvious candidate, as is non UK equity income. Fixed Income (UK or otherwise) shouldn't be overlooked either. But this is as true for funds as it is for ITs. I think that you might be being too binary about this. For a decade or more many people will have had a good slug of Woodford's Invesco Perpetual Income and High Income (funds) and his Edinburgh Investment Trust in their growth portfolio as reinvestment of dividends is a valid strategy to achieve steady growth. Conversely, few people would eschew Scottish Mortgage for growth just because it's an IT. You don't need to be so prescriptive about it. Horses for courses, tools for the job and all that good stuff
    • bostonerimus
    • By bostonerimus 19th May 17, 12:42 PM
    • 875 Posts
    • 443 Thanks
    bostonerimus
    What I see in the original post and many subsequent posts is the desire to "slice and dice" to cover sectors and regions by buy lots of funds. This is a confusing and expensive approach. You can construct a well diversified portfolio with just 3 of 4 funds......if you want to overweight small cap or emerging markets then just buy that sort of index tracker to complement core whole market UK and International equity and bond trackers. Don't think you need to be invested in everything and stop paying active managers 1% or more in annual fees.
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