What Investment Trusts do you hold?

JohnRo

I hold too many, looking at the replies here.

The reasons for me choosing IT over UT after being persuaded of the merits on here and elsewhere, alongside the risks, are

fixed platform charge on CSD, effectively zero with 12 purchases p.a.
real time pricing for some control over entry or exit via market order,
discounts on the NAV where available, although slim pickings right now,
gearing which should eventually boost any long term gains.
and their ability to smooth dividends through the peaks and troughs.

jimjames

Moby wrote: »

The real question surely is what you pay for what you hold?

Very little but what you hold is pretty important as well. No point being cheap but poor performer.

guitarman001 wrote: »

Thanks for your replies!! Interested to hear more on why some of you chose the ones you did. And why these over UTs (or in general why these as part of a balanced investment strategy)?

Why do you think ITs are rarely discussed?

I've always considered investment trusts to be one of the hidden gems of the investment industry. I think they are less widely known as they are independent companies so not publicised in the same way as an investment group would do for their unit trusts. Historically there was also the perception, if not reality, that they were also shunned by advisers because they didn't pay commission.

For a DIY investor they were a very cheap way into building an investment portfolio as you could go direct for very low cost, often just 0.5% stamp duty when at the time most unit trusts were charging 5.5% initial charge when bought direct.

I particularly like them for illiquid investments as they don't need to churn their portfolio for redemptions and new investments but that also helps for other types of investment where the manager is able to plan a portfolio longer term. They are also a great way to invest long term for children and far better than things like friendly society plans that are more widely promoted so perhaps their low cost has been a disadvantage.

When I started buying them in the late 1990s the discount was a good bonus too - being able to buy £1 of assets for 80p seemed like a good deal to me. That has disappeared a bit with many trusts at a premium and I'd be very wary about buying above NAV.

There is less of a price differential now with RDR but I think the other reasons for using them are still just as valid.

Thrugelmir

JohnRo wrote: »

discounts on the NAV where available, although slim pickings right now,

That's part of the reason why I ditched my main holdings and started to invest direct.

Also I had concerns over the liquidity of private equity IT's. Which is held up by the recent withdrawing of floatations and under performance of others.

JohnRo

Thrugelmir wrote: »

That's part of the reason why I ditched my main holdings and started to invest direct.

Presumably you mean directly in the underlying companies?

takesyourchances

Looking to start a simple separate Investment Trust dividend portfolio in a fund and share account separate from my S&S ISA and SIPP.

I was looking over ideas and have been thinking about two Investment Trusts for this to start with, City of London and Murray International.

The idea is to buy and hold and just collect the dividends.

These two seem to be some of the solid IT's around and capital growth long term and a reasonable dividend.

Two would be fine to start with and maybe a third like Aberdeen Asian Income at some stage once started.

Any thoughts is appreciated.

.

TCA

I hold Murray International but it's currently on a premium of over 6%, so perhaps not the best time to buy. I also hold Aberdeen Asian Income which hasn't done much in terms of recent growth, but still a decent purchase in my opinion. I'll probably buy City of London at some point too. Plenty good info on the AIC website:

https://www.theaic.co.uk/aic/find-compare-investment-companies

takesyourchances

Thanks for reply and the link which I will look over.

The City of London I feel would be a reasonable first perchance for me.

Murray International seems maybe not a good idea at the moment with the price, but seems to be a good global IT.

I have other Asian exposure in my ISA as I think long term Asia is a good buy but would add something like Aberdeen Asian Income or similar at a later stage after a couple of IT's.

Any thoughts on Merchants Trust at all? it seems to pay a reasonable dividend as well.

Another I have been looking at, as I have an interest in Canada, is Middlefield Canadian, any thoughts on it? Others thougth would be of more interest first to get started.

Thanks. .

PS, to add what alternatives would be worth looking at for global, the link looks good I will look over it better in detail, thanks again.

bowlhead99

You mention you are going to hold and 'just collect' the dividends - by this I assume you just want the income and aren't going to be reinvesting it?

Is there any particular reason you want the holdings to be investment trusts rather than funds? Are you trying to complement any particular holdings in the ISAs or SIPPs or is this just a standalone income generator? How diversified does the 'global' focus need to be - Asian Income as your followup isn't very broad?

There's a lot of things out there you could look at for income. As your portfolio gets broader there are all sorts of specialist options - for example Target Healthcare REIT or its competitors (not a recommendation as it is pretty niche, short track record, premium against NAV etc - I just like the look of the sector). Some REITs can have good levels of sustainable income. However as a higher taxpayer who isn't really looking to take and spend the income anyway, I generally have my income generating stuff in my wrappers and the growth stuff outside.

Thrugelmir

Lost touch recently with IT's. Any good trusts on a sizable discount at the moment?

takesyourchances

bowlhead99 wrote: »

You mention you are going to hold and 'just collect' the dividends - by this I assume you just want the income and aren't going to be reinvesting it?

Is there any particular reason you want the holdings to be investment trusts rather than funds? Are you trying to complement any particular holdings in the ISAs or SIPPs or is this just a standalone income generator? How diversified does the 'global' focus need to be - Asian Income as your followup isn't very broad?

There's a lot of things out there you could look at for income. As your portfolio gets broader there are all sorts of specialist options - for example Target Healthcare REIT or its competitors (not a recommendation as it is pretty niche, short track record, premium against NAV etc - I just like the look of the sector). Some REITs can have good levels of sustainable income. However as a higher taxpayer who isn't really looking to take and spend the income anyway, I generally have my income generating stuff in my wrappers and the growth stuff outside.

Thanks Bowelhead as always for your reply, Yes the plan would be to hold in this portfolio and just collect the income and not reinvest it.

The idea is as an income generator in this portfolio, separate from my S&S ISA and SIPP and not to compliment other holdings in those.

I understand investment trusts have a long history and a history of dividends etc like City of London and they are structured different to funds with their set up and managing. I have funds in my ISA, which is for long term growth etc.

I understand that Asian Income would not really be a broad diverse from UK and Global and Global would have a blend of Asia in it from what I seen in some I looked etc.

REIT with a sustainable income would be an option and I understand that Infrastructure can be a sustainable income as well and I would be open to these options after adding UK and Global. I would need to look into these styles of options more with IT's.

Any thoughts is appreciated.