Investment Trusts

MPN

JohnRo wrote: »

MonroeM wrote: »

You might struggle on the basis that they are just that, diverse globally oriented. There's nothing wrong with holding two if they have similar holdings either, imho. As long as they're net cost neutral.

Whether it proves advantageous is debatable, highly unlikely if both are similar, other than as a bit of insurance against each other.

The OP did say that Fundsmith and Artemis Global Income are not similar funds so surely they can compliment each other in her portfolio?

StellaN

MPN wrote: »

JohnRo wrote: »

The OP did say that Fundsmith and Artemis Global Income are not similar funds so surely they can compliment each other in her portfolio?

I am now actually thinking of just keeping Fundsmith and selling both the Newton and Artemis Global Incomes but adding a Global Investment Trust that invests in mainly different shares to Fundsmith - need to do me research into which global trust would compliment Fundsmith maybe a trust that invests primarily in technology?

JohnRo

StellaN wrote: »

...maybe a trust that invests primarily in technology?

Take a look at SMT as one option but be aware it is relatively high on the risk scale.

ColdIron

Now that it is to enter the FTSE100, SMT is reducing its annual fee from a good 0.45% to a very good 0.3%. This is about as good as it gets for ITs

http://citywire.co.uk/wealth-manager/news/scottish-mortgage-to-cut-fee-after-entering-ftse-100/a996917?ref=wealth-manager-investment-trusts-list

bowlhead99

ColdIron wrote: »

Now that it is to enter the FTSE100, SMT is reducing its annual fee from a good 0.45% to a very good 0.3%. This is about as good as it gets for ITs

Not quite.

The fee was previously 0.3%. It will now be tiered so it remains 0.3% up to £4bn and drops to 0.25% for the incremental assets under management above that level. So for example, £4billion costs 0.30% but £5 billion will be a blended average of 0.30% on most of it and 0.25% on the top tier, producing 0.29% overall.

The 0.45% was the approximate ongoing charges including the management fee and other running costs of the fund; some of those other costs will be percentage-based and some will be more fixed in nature producing a lower percentage where the costs are spread over more NAV.

It is good to see lower costs but the practical benefits of a management fee going from 0.30% to 0.29% will be pretty negligible in the grand scheme of things if you see the range of gains and losses they make from year to year.

ColdIron

So would the statement in the article be more accurately expressed as:

From 1 April a tiered charging structure will replace the current 0.45% charge, priced at 0.3% on the first £4 billion of assets and falling to 0.25% thereafter plus running costs to produce an OCF of about 0.44%?.

bowlhead99

Yeah, could be. But it depends how big they get, as if fund size grows to £6bn instead of £5bn or £4bn then the mgmt fee is only 0.28% and the accounting and audit and website maintenance and printing report costs and legal costs etc etc are not necessarily going to get an extra zero on the end just because the company found its Alibaba shares to be more valuable. So you could get the OCF usefully below its current level.

If it's a trust I follow, I prefer to read the RNS before paying too much attention to the press comment

https://www.investegate.co.uk/scot-mort-inv-tst--smt-/rns/scottish-mortgage-to-enter-ftse100/201703011826382890Y

StellaN

JohnRo wrote: »

Take a look at SMT as one option but be aware it is relatively high on the risk scale.

Yes, I have been looking at SMT as per my or.original post but I thought I might find a global IT that was tech orientated that possibly was at a better discount because SMT now looks like fashion investing! Also, because of this the price to buy in is v e very high!

JohnRo

You could call SMT a few things but fashion investing is stretching it a bit.

The premium is just above zero and just below the 12 month average.

The current SP now speaks nothing of the future, it could easily double or more in the next five years, it could also halve or more. My money is on the former.

Use the AIC website to filter which investment trusts might be suitable.

This link shows AIC members in the Global category

StellaN

ColdIron wrote: »

Now that it is to enter the FTSE100, SMT is reducing its annual fee from a good 0.45% to a very good 0.3%. This is about as good as it gets for ITs

http://citywire.co.uk/wealth-manager/news/scottish-mortgage-to-cut-fee-after-entering-ftse-100/a996917?ref=wealth-manager-investment-trusts-list

I just wander if it's priced quite high at the moment because so many people are investing in SMT? I'm just struggling to find an alternative global IT that compliments Fundsmith as much so in the end I may end up investing in SMT.