are investment trusts an investing style?

Ark_Welder

To your Touche, I shall add Remnant.

Would have been F&C Enterprise back then, then. I even had F&C German for a while - a short while! Haven't had GPE for a good few years though. I'm actually a bit light on PE at the moment, but that is because I've recently been moving my SIPP to a more defensive position. Well, I hope that's what I've done! Can't match you on the duration front though: my longest-held IT is Temple Bar at 12 years. But I was a unit trust devotee in my early years until I discovered enlightenement.

The discounts can be a pretty good contra-indicator for investing, especially for something such as the PE sector which can have a big swing between in the discount. And definately agree with the comment about individual stock selection.

I'm actually surprised about how little I could find about trend away from ITs by institutions, I seem to remember it as being in just about every article I read for a good many years. Perhaps the articles haven't been put into electronic format yet!

Reaper

Ark_Welder wrote: »

The discounts can be a pretty good contra-indicator for investing

They can but I would certainly not rule out ITs with large discounts. If you believe there is a reason why their fortunes may changes (eg a new manager) then a large discount can be a wonderful thing. Firstly you effectively get a lot of investment for your money, which helps dividend returns. Then if the fund performance does indeed improve you get:
1) The fund growth
2) Growth from gearing
3) Growth from a narrowing discount as the IT becomes more attractive to investors

atush

Funnily enough, Graphite is one of the ITs I invest into monthly.

jimjames

atush wrote: »

Funnily enough, Graphite is one of the ITs I invest into monthly.

One of my biggest current holdings is in Graphite. I think it has a good long term record and the current discount has been a good time to buy.

Ark_Welder

This is what I mean about the discount being a contra-indicator: a large discount = lower investor interest = potentially a good time to buy; smaller discount or even a premium = more investor interest = perhaps consider reducing holding, although this should not be an automatic given.

This is a reason why I am not a big fan of buy-backs and discount control mechanisms!

jimjames

Ark_Welder wrote: »

This is a reason why I am not a big fan of buy-backs and discount control mechanisms!

Absolutely! If I am a net buyer then I always vote against that at the AGM!

moneylover

atush wrote: »

I invest in ITs, in preference to OEICs in general-
But my ITs are not in ISAs, so I don't have those large fees from HL or elsewhere. And buying costs are very low. as most of mine (I have a few that I have bought individually thru my brolkerage acct so paid a fee for buying) are from monthly savings plans where buying costs are very low indeed. And I have benefited from Drip feeding into the market, and 'pound cost averaging'.

And they pretty much ALL have performed well for me over the years. Some better than others, but up overall even in the bad days when markets were falling.

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I have been considering monthly investments into two or three ITs -are there any thatwould be good ones to start with in the present market?

atush

jimjames wrote: »

One of my biggest current holdings is in Graphite. I think it has a good long term record and the current discount has been a good time to buy.

I've been invsting into it for over 10 years now. It is my second oldest holding.

atush

moneylover wrote: »

I have been considering monthly investments into two or three ITs -are there any thatwould be good ones to start with in the present market?

I'd say start with a biggie that invests all over the world. F&C, Alliance, Witan etc. Then you can, when you have more money to save each month, add others in more niche areas like emerging markets, private equity (like Graphite), income and growth (invesco).

Each company will have their own min per month or per trust, some like f&c it is 50 quid, others like Invesco perpetual and Witan it is 25 etc. When i first started with invesco it was 20, and with witan you could put in just 25 quid per quarter (which is how i was able to start 3 for my 3 boys at once as I didn't have 75 a month extra at the time and didn't want to just open one for the oldest). This is what i used to do with their child benefit, along side opening an online stock acct.

Buying and selling charges tend to be quite low (esp buying which is pennies).

moneylover

atush wrote: »

I'd say start with a biggie that invests all over the world. F&C, Alliance, Witan etc. Then you can, when you have more money to save each month, add others in more niche areas like emerging markets, private equity (like Graphite), income and growth (invesco).

QUOTE]
thanks- of these are any a particularly good buying opp at the moment -I note that jimjames says current discount a good time to buy Graphite.