Sanity Check

saveonarola

JamesU wrote: »

HL's website does state 0.55% for the fund AMC too (and Blackrock specify this for the class A units on this fund), but in addition HL says % ter/"ongoing charges" at 0.71%. Best to simply ask HL what the extra 0.16% charges are for if you decide to buy from them?

Have checked the fund TERs. Bestinvest website was wrong. Fund TER is 0.71% with both HL and Bestinvest.

saveonarola

JohnRo wrote: »

I'll bookmark these, I have read about these funds and commodities in general on a similar thread on here (and elsewhere).

Before you jump into commodities, make sure you read up on 'front-running', 'negative roll-yield' and 'persistent cantango', if you haven't already. There seems to be a lively debate around commodities futures as an investment, which I wasn't aware of until I went digging for more information.

sabretoothtigger

Ive owned LCTY for a few years though I sold most a while back. Most value is held as short dated treasuries and then they buy contracts which are also the immediate rolling quarter hence contango, etc.

That may not be very efficent though if the price is rising you get an increase ok.
The alternative one to look at is XDBC which is handled in a scaled way, I read a review on it once. They arent forced to buy a new contract every quarter with a new premium (contracts are similar to insurance, they get used up)

HL lets you compare a fund to a ticker, even though ETF are supposed to be cheaper it might be best to see how they compare because this rolling cost might cause costs to compromise performance

JohnRo

Syphoned off 25K of the ISA transfer into a market leading easy access interest bearing savings account. Lost the ISA wrapper on that money but still holding 2K in cash on the ISA account as this is a long term monthly feed so prepared to hold most outside the ISA and then lump some of it back in if there is a big market drop on any of the tracker funds.

Still holding and contributing to the Vanguard trackers at £50 a month each but in a moment of weakness (about a days worth of reading) I've added these managed fund holdings onto the monthly plan, for better or worse.

KAMES HIGH YIELD BOND A Inc
ABERDEEN GLOBAL ASIAN SMALLER COMPANIES D2 GBP Acc
LIONTRUST UK SMALLER COMPANIES Inc
F&C US SMALLER COMPANIES 1 Inc
INVESCO PERPETUAL GLOBAL FINANCIAL CAPITAL R Inc

The Vanguard and Blackrock trackers have collectively returned 1.1% since the start of October.

Still sorely tempted to start index ETF trading in the next tax year and do some buying and selling on volatility within a broader buy and hold strategy. IWeb look tempting on price and trading cost, if anyone has reasons to not to use them I'm all ears though.

atush

More UK less Japan.

sabretoothtigger

Neptune Japan fund borrows yen to buy sterling but invests in the Japanese companies still. Since they are operating the car factories here anyway
Only problem is our Bank of England is copying Japan

gadgetmind

JohnRo wrote: »

INVESCO PERPETUAL GLOBAL FINANCIAL CAPITAL R Inc

Someone else as mad as me!

From memory, I'm up well over 15% on this since it launched and unless the whole world turns to poo, I think it's the gift that will keep on giving. I went for this fund to diversify my holdings in bank prefs such as LLPC and NWBD, all of which have also done well for me.

I don't hold any of the others you list, but I do have investments in similar areas via close-ended vehicles.

if anyone has reasons to not to use them I'm all ears though

I question your whole strategy of moving away from buy and hold. Selling should be something that's forced upon you by the market offering you more for an asset than you think it's now worth, and such selling should be something you do selectively and reluctantly.

Linton

gadgetmind wrote: »

Someone else as mad as me!

From memory, I'm up well over 15% on this since it launched and unless the whole world turns to poo, I think it's the gift that will keep on giving. I went for this fund to diversify my holdings in bank prefs such as LLPC and NWBD, all of which have also done well for me.

I don't hold any of the others you list, but I do have investments in similar areas via close-ended vehicles.



I question your whole strategy of moving away from buy and hold. Selling should be something that's forced upon you by the market offering you more for an asset than you think it's now worth, and such selling should be something you do selectively and reluctantly.

I have also recently bought IP Global Fin Cap. Perhaps I've missed something, but it is expected to pay a good interest/divi now and should also grow nicely when the banks recover. Its a bit surprising to me that the total fund capital is so low (about £20M from memory).

Agree that buying and selling is to be avoided. How do you know when the price has risen enough to sell without losing out on further rises? How do you know when to buy back in?

gadgetmind

Linton wrote: »

I have also recently bought IP Global Fin Cap. Perhaps I've missed something, but it is expected to pay a good interest/divi now and should also grow nicely when the banks recover.

Lots of the bonds and prefs they hold had *very* depressed prices during the mad times, and they are still yielding high due to the low ratings of the banks and insurers.

The main threats are inflation (knackers all fixed interest, but high yield copes better) and widespread defaults.

Its a bit surprising to me that the total fund capital is so low (about £20M from memory).

It's a bit of a sub-fund for them, isn't marketed heavily, is in a deeply unfashionable area, and even their launch collateral had a distinctly low-key feel to it.

Buying open-ended funds is *very* unusual for me, and I hate to give anyone a slice of the (usually) low returns from FI, but I liked the contrarian feel to this one.

It is however a mistress of the moment rather than a wife for life. One day, the aggregate underlying holdings will be worth more to someone else than to me.

JohnRo

Linton wrote: »

Agree that buying and selling is to be avoided. How do you know when the price has risen enough to sell without losing out on further rises? How do you know when to buy back in?

I'm not aiming for perfection, or anything even close. Any ETF trading would be along side much heavier more conventional LTBH investment. I do some forex trading and have comfortably managed to avoid wiping myself out so have the patience and discipline even if I lack the insight and ability to get rich from it.

I am thinking if I buy an ETF index at what seems an opportune time, and it rises, for the sake of argument, say 10% in a short time I'd sell, on the basis that's a good years worth of growth from my investment expectations. I might well lose out on further gains but won't lose sleep over it. The advantage of ETF trading is the ridiculous roll over charges from leveraged betting positions are removed and it's an income generating punt even if the market moves against it.

Buying back in I would be looking for subsequent price drops back in to the region of where I started from before selling. If the drop happens first I'll simply hold for income until such time the sale price begins to look tempting again.

I know it's taking a punt, I'm not fooling myself, but it isn't a red or black, last throw of the dice type scenario either.
The investments themselves are mainstream and nothing to fret or be fearful of or about.

The only unknown is how often if ever the opportunities I'll be looking for might present themselves but it's not like I'll be banking on the gains. I just see it as taking (some) profit out of the position as and when it presents.