are investment trusts an investing style?

Ark_Welder

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?

This would depend upon the areas covered by your current assets and upon what your objectives are.

atush

Ark_Welder wrote: »

This would depend upon the areas covered by your current assets and upon what your objectives are.

I agree. I started with a basic general trust, then branched out to Graphite as i had no private equity exposure elsewhere. Then I bought Witan for the boys, then Invesco perpetual inc and gr, at the same time I was buying them with lump sums as I had it in my stock broking acct like Eastern european trust (this one is up like 400% and my first emerging markets play) and aberdean asian SC (my asian play), Fidelity Special situations (my contrarian play) etc.

I choose an area/type then choose an IT. But start with a general.

Totton

Originally Posted by moneylover
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 would start with;
Personal Assets Trust (PNL) or Troy Income & Growth (TIGT),
Edinburgh (EDIN) or Perpetual Income Growth (PIGT) and for spice
Blackrock World Mining (BRWM), Scottish Oriental Smaller Companies (SST) Templeton Emerging Markets (TEM) or WorldWide Healthcare (WWH)

Just some ideas, I'd probably go something like 40%, 40% 20% but it all depends on how much and what else you have. Note that IT discounts are against you on most income or growth & income trusts just now, also I'd watch out for those trusts with a performance fee which often means you'll be paying the same or similar as if you held an OEIC.

If unsure but want to dip a toe in the water, go steady with PNL!

Regards,
Mickey

Totton

Here is a good link (at Motley Fool) to an interesting thread covering growth IT's - Link to Thread

moneylover

thank you - all this gives me enough to choose from and their is also the IC list.
However I still struggle to understand the discount. If I am drip feeding I guess I can disregard however if I invest any lump sums its more relevant.
I am a blank sheet at the moment with no investments only savings.
Does anyone know of a good general article that explains the discount,NAV etc - at the moment I am struggling to understand. for example if I bought Graphite which is on a good discount at present is this becasue no one much wants it, but if I consider it a good UT for me I will get more of a bargain.
I like the fact that UTs you can buy and sell like stocks and shares rather than ITs where if you sell you dont know the price, however I have got to understand what I am doing!
Its maybe too cheeky but could anyone narrow downthe suggestions made? As I havent any 'sectors' at the moment I suppose I am looking for a combination of good sectors to be in at the moment and UTs within them taking into account current discounts etc and their importance (or lack of). Then I can add as I get more understanding.

I think I read somewhere that Alliance Trust are doing free purchases till the end of July. I have got to sign up with an online broker and was just going to go withthe cheapest but this is a good deal?

atush

Totton wrote: »

I would start with;
Personal Assets Trust (PNL) or Troy Income & Growth (TIGT),
Edinburgh (EDIN) or Perpetual Income Growth (PIGT) and for spice
Blackrock World Mining (BRWM), Scottish Oriental Smaller Companies (SST) Templeton Emerging Markets (TEM) or WorldWide Healthcare (WWH)

Just some ideas, I'd probably go something like 40%, 40% 20% but it all depends on how much and what else you have. Note that IT discounts are against you on most income or growth & income trusts just now, also I'd watch out for those trusts with a performance fee which often means you'll be paying the same or similar as if you held an OEIC.

If unsure but want to dip a toe in the water, go steady with PNL!

Regards,
Mickey

Totton, a couple of those are on my considering list, and I have BRWM bought as a lump sum.

The good thinga bout Its is that there is one (or in my case 8-10) for everyone.

Linton

moneylover wrote: »

....
I like the fact that UTs you can buy and sell like stocks and shares rather than ITs where if you sell you dont know the price, however I have got to understand what I am doing!
....

Wrong way round!!!

With Unit Trust and OEICs you dont know the selling price because its not calculated in real time. So they are not suitable for short term trading.

ITs are normal shares and are bought and sold accordingly.

moneylover

yes, sorry,did know that - my fingers typing quicker than brain is working!!

Thrugelmir

moneylover wrote: »

for example if I bought Graphite which is on a good discount at present is this becasue no one much wants it, but if I consider it a good UT for me I will get more of a bargain.

Graphite trades at a discount as its underlying investments are primarily held in illiquid assets. The value placed on these assets is not based a market price. Until the investments are liquidated or receive a full market listing. The true value is not quantifiable.

This is much the same in most private equity investments.

Personally I would build a core portfolio first then add more specialist holdings at a later date. As the ride can be very bumpy.

Ark_Welder

AIC: http://www.theaic.co.uk/Guide-to-investment-companies/What-are-investment-companies/How-they-work/