Investment Trust Choice's for ISA?

philng

I have been reading that Investment Trusts are a more cost effective route to invest than Unit Trusts with lower charges. I already have a broad spread of self select share holdings & looking to further invest for this years ISA.

Any suggestions for either UK or Global based Investment Trusts with a consistent performance? Preference for reasonable yield payers but not restricted to this.

BLB53

I agree that ITs give better returns over the long term largely due to their lower charges.
I would suggest City of London and Murray International are worth a look, also Aberforth Smaller for diversification.
There was a good article on Motley Fool yesterday www.fool.co.uk about a lazy portfolio made up of ITs so may be worth a read.
Also a few good articles on www.monevator.com .In the 'weekend reading' article he recommends a new ebook 'Slow & Steady...' which I downloaded and this deals with investing in investment trusts.

Good luck!
BLB

kharne

This site is useful for comparing different ITs. It is true that they might be considered more cost effective, but there are two main additional risks. Firstly, gearing, which allows the manager to borrow up to 20% of the NAV. This might provide higher returns in a bull market as there is more money to invest, but could also prove dangerous in a downward market. Secondly, their share price and NAV are not directly linked; i.e you may be paying more or less for the book value of a fund. In a risk-off environment a more risky IT may find it's share price dropping much lower than it's NAV.

Hope this helps.

Neverland

Edinburgh US and UK market tracker ITs are low cost and currently sit at nice looking discounts

Alliance Trust is sitting at a fat 15% discount and always increases its dividends, its pretty badly run tho...

bigfreddiel

philng wrote: »

I have been reading that Investment Trusts are a more cost effective route to invest than Unit Trusts with lower charges. I already have a broad spread of self select share holdings & looking to further invest for this years ISA.

Any suggestions for either UK or Global based Investment Trusts with a consistent performance? Preference for reasonable yield payers but not restricted to this.

you should investigate etfs as well - not too complex - and they will give you exposure to more interesting investments for example
ISHARES PLC ISHARES FTSE UK DIVIDEND PLUS - tracks top dividend paying companies, plus the usual trackers and many at very low ters

fj