Innappropriate Investments

Ark_Welder

talexuser wrote: »

Since it's been brought up I bought Perp High Income in 1996 as second choice after Jupiter Income the year before. It is the only fund (ISAs every year since then) that I have never changed and added to (selling underperformers) since. Boy am I glad I didn't buy an index tracker!

According to the last available annual report (December 2010), the purchase and sale transaction costs (commissions and taxes thereon) amounted to 0.0882% of end-of-year net assets. This is in addition to the TER of 1.69%

http://investor.invescoperpetual.co.uk/UK/onshoreliterature/UK_Series_MRA_long.pdf (Page 44).

dunstonh

talexuser wrote: »

Since it's been brought up I bought Perp High Income in 1996 as second choice after Jupiter Income the year before. It is the only fund (ISAs every year since then) that I have never changed and added to (selling underperformers) since. Boy am I glad I didn't buy an index tracker!

Exactly. And all those years when Fidelity Special Situations was the fund that IFAs used the most. Do, you think those investors would rather have had a tracker.

Increasingly, there are markets where trackers make sense and its very hard for managed to offer value. UK equity is not one of them yet. Going with value/recovery/special sits/equity income at different points in the economic cycle can still give you greater potential and if that is what you are after then why not?

However, if you look at Japan or the US, then you find it harder nowadays to find managed funds that stand out and a tracker can make sense.

It also needs to be remembered that trackers today are cheaper than they were in the past and platforms didnt exist 10 years ago (just). You bought via the fund house.

According to the last available annual report (December 2010), the purchase and sale transaction costs (commissions and taxes thereon) amounted to 0.0882% of end-of-year net assets. This is in addition to the TER of 1.69%

And worth every penny.

Ark_Welder

I forgot to add that the TER would be the amount deducted before accounting for any rebates made by the investor's platform. So an investment held via ATS, for instance, which gives a rebate of 0.5% of the AMC, would reduce the TER to 1.19%.

http://www.alliancetrustsavings.co.uk/pdf/list-of-funds.pdf?

jamesd

Meeper wrote: »

Consider it a public service from the IFA community.

Thanks to you and the other pros for the various bits of education over the years.

jamesd

darkpool wrote: »

tell you what, to show i'm not a bad guy i'll share my expertise with MSE. so anyone that has ever been curious about road construction now is your chance. just ask any question about road design/ construction and i will answer it. PSV values, stone grading, safety barriers, compaction, just bring those questions on....

With pleasure. Why are those involved in the road industry preaching a more roads agenda when it's better for society to improve public transport including trains and buses instead of spending money on selling more roads to people? Is it because the road builders only make money from building roads not railways or buses?

I'm sure that those in the industry will keep on trying to conceal the hidden costs of road, like the noise, carbon dioxide and other pollution emissions from the vehicles using the roads and the damage to the environment from building new roads and despoiling countryside. Road builders should be forced to disclose all of the costs of their roads, including the cost of fully capturing and sequestering the pollution emitted by the vehicles using the over their lifetime. Then we can have a fair competition between the various ways of traveling instead of one where the biased road builders are just trying to push the products they are able to sell.

Ark_Welder

Inappropriate infrastructure investments

sabretoothtigger

Meeper wrote: »

My portfolios generally contain 10-14 funds out of several thousand available. Who cares what the majority were doing? They wouldn't be selected if they were under-performing, would they?

Think before you type.

'I only pick winners' :think: That is a cunning plan

Emerging Markets you will find that different funds have a different idea of what constitutes an EM, and the % that should be invested in any particular country. Your objectives may rule out the very few trackers that are available in that sector.

Asia pacific tracker is close enough to EM for me and has done well. I dont doubt it can be beaten but I think most performance comes from being in the right place at the right time so you could just sell and buy it yourself in theory

trackers do not seem to perform well (eg small companies)

FTSE 250 ? I dont see how they can really track smaller then that which is maybe where the EM thing fails also


DP whats the best modern solution to replacing drain covers, etc Invent that and you got the next 'cat eyes' fortune

talexuser

jamesd wrote: »

Thanks to you and the other pros for the various bits of education over the years.

That has got to be said. I started off as an amateur with not much knowledge of investing, reading the money pages of newspapers and the recommendations of intermediaries and scouring the tables to check on their puffs and see what was really worthwhile, keeping spreadsheets compared to the relative index to work out whether funds were worth their money. I know a bit more now compared to then but as nothing compared to some of the posters here. I've learnt a lot from this forum.

jamesd

If you've got some money to spend and the time to read it, start reading the Saturday edition of the Financial Times if you aren't already. Not cheap, though. But good for education if you've never really read much about business, finance and investing. It'll help to put some macroeconomic thinking ahead into your planning if you're not already doing that.

Don't (or do:) ) look at my posts from five or six years ago to see another person with a lot of learning to do.

Ark_Welder

Some of the articles can also be read on the FT's web-site without the need for a logon, and a free registration is available that will allow access to a lmited number of further artices per month.