..........

Ark_Welder

..........

Reaper

The first question that springs to mind is not financial, it's why is the thread named after a plant?

robatwork

Very comprehensive - good job AW.

As to the plant - maybe because it produces something useful from waste ground?

aspiration_2

Great job arkwelder. Thanks.

Sometimes examples with why and how are much better (in addition to) than the usual 'do your own research' pointers.

TCA

Excellent Ark Welder. Very interesting and informative.

gadgetmind

We share many holdings but clearly have different timescales.

I question why these two are in "income tomorrow".

• 3i Infrastructure [3IN] 6.16%, 9.46%
• HICL Infrastructure [HICL] 2.55%, 4.22%

I hold a fair wodge of infrastructure but as a bond alternative/diluter and don't expect them to provide the same income growth as other investments.

BTW, as you probably know, I also hold LMP and UKCM. As both have very experience managers with "skin in the game" and reasonable gearing, I'm happy to hold.

I'm in profit on both, but this just means that I got lucky regards timing. I'm further ahead on LMP than UKCM, but again, all timing. Perhaps your timing was different, which is why your perception is different?

Shaolin_Monkey

I have 3IN and HICL too They do have a history of increasing dividends. According to Stockopedia, 5.4% 5 yr annualised dividend growth for 3IN, a more modest 2.7% for HICL. Re-investing dividends also provides a rising income in a way too.

bowlhead99

I have more in common with your second batch than your first, as I have no particular reason to get income now (other than the fact that some things with solid income may be more resilient in a downturn).

On the private equity side I hold Pantheon (which is the only one in its sector that I've taken profits on in the last year's rally) and a couple of others - HVPE and APEF. The former is a fund of fund of funds and very diversified, a bit more US-centric than Pantheon with quite a bit of Venture exposure. APEF is more focused, also fund-of-funds but with only 25 or so investees. Both have reduced their discounts significantly in the last year and have had more return from the discount reduction in that timeframe than from underlying NAV. I wouldn't hold any P.E. stuff for income though, it's all about medium to long term growth stories.

I also have SMT which has been a decent performer in my global equities bucket, along with NCYF as part of my my 'non-equities' pie chart (just announced final dividend with slight increase on last year). For asian smaller cos I've been using Scottish Oriental (SST) rather than Aberdeen - again a good discount narrowing helped since this time last year. But I follow Aberdeen's reports and they seem to know their onions in emerging markets, but then so do First State, it was a bit of a toss up when selecting.

Reaper

I was interested to read you hold GLI Finance (GLIF). I hold them too, dating from mid 2011. CLO (collateralised loan obligation) based companies had, not surprisingly, been hammered after the crash but I hoped having survived this long it would not go on to become a casualty. The high yield was appealing plus the fact management charges were due to be cut meant it was expected to become bigger still. Worth the risk I thought. Based on my purchase price this currently yields 12.4% plus 30% capital growth and having bought earlier your figures must be even better.

On the downside this breaks a golden rule as I can't honestly say, hand on heart, that I fully understand the business and the level of risk.

TCA

bowlhead99 wrote: »

For asian smaller cos I've been using Scottish Oriental (SST) rather than Aberdeen - again a good discount narrowing helped since this time last year. But I follow Aberdeen's reports and they seem to know their onions in emerging markets, but then so do First State, it was a bit of a toss up when selecting.

I like First State too and hold their Global Emerging Market Leaders UT within my pension. Planning to add Templeton Emerging Markets IT as part of a suite of unwrapped IT purchases.

Also concur with Aberdeen Asian Income (for my potential income portfolio) and almost fancied buying 50/50 with Schroder Oriental Income but the latter seemingly requires separate reporting as foreign dividend income, so can't be bothered.

Back to growth, going to split my emerging markets small cos allocation between Aberdeen Asian Smaller Cos and Scottish Oriental Smaller Cos.

Thinking about a similar split between Aberforth Smaller Cos and F&C Global Smaller Cos. Anybody got any thoughts on these trusts?

TCA

Ark_Welder wrote: »

Note that AAIF also constitutes foreign income as it is also incorporated in the Channel Islands (Jersey, as opposed to Guernsey). Both are entitled to a notional 10% tax credit so basic-rate taxpayers have no further liability.

Aberforth have a value style and specialise is smaller companies, although 'smaller' does involve the lower reaches of the FTSE250. So one answer would depend upon your definition of 'smaller'. And value versus growth does go in and out of favour, so a purchase might be timed to be after a period of underperformance? I haven't been following them for a few years, so can't say one way or the other.

There isn't much choice in ITs when it comes to global smaller companies, so that might be one answer. It also provides exposure to both Aberdeen and FS smaller companies funds: perhaps something to consider when looking at that arena.

Thanks AW. Wasn't aware of AAIF being another Channel Island trust and I like the look of it so that won't put me off. Will take another look at Schroder Oriental Income I think.

On the small company front, I already hold Vanguard's Global Small Cap index fund and will continue to dripfeed into that and incidentally that has been the best performer of all my index funds. Aberforth and F&C Global are also indeed near their highs over 52 weeks, so a period of underperformance is probably the opposite to what we're experiencing. But then most stuff I'm looking at is like that and I have to say it makes me wary of pressing the "buy button" on a large lump sum so I might buy in bits! Aberforth is sitting on a decent discounts of 12.2% but not sure how much weight to put on that. ASL has a decent 2.6% yield (FCS only 0.81%) and both have good dividend growth over 5 years, so maybe bonuses despite this being a growth purchase.

Anyway, enjoyed reading your latest update on Pool 2. AAS is one I hold in UT form but will buy in IT form too I think. Lowland and Temple Bar are another two from your second pool that are on my shortlist. I'm avoiding fixed income and any other elements I have little understanding of and will retain some cash instead for now.