Scottish Mortgage IT (SMT)

AnotherJoe

Keeping mine. Just sold BP today, have to think of something to buy with that now.

Alexland

I am completely out of ITs for now as I don't see the point with leveraging return when market fundamentals are still looking a bit expensive. I'm staying invested with plain old boring OEIC unit trusts. If the market starts looking better value and I decide to get back into ITs then Bankers is my current favourite. Still it depends on economic conditions at the time.

I really wish someone would do a liquid IT based on a passive All World index.

Alex

takesyourchances

Alexland wrote: »

I am completely out of ITs for now as I don't see the point with leveraging return when market fundamentals are still looking a bit expensive. I'm staying invested with plain old boring OEIC unit trusts. If the market starts looking better value and I decide to get back into ITs then Bankers is my current favourite. Still it depends on economic conditions at the time.

I really wish someone would do a liquid IT based on a passive All World index.

Alex

I know what you mean I'm ploughing on so to speak through it every month regardless and also building up dividends as well.. I'm putting regular into bankers also and other ITs but I've only a couple thousand left of my allowance until April so spreading drip feeds until then.

kidmugsy

People hymn the praises of (say) annual rebalancing between asset classes. I imagine that rebalancing among the shares of ordinary individual companies is too messy.

But what about ITs? Unlike normal individual companies their investments are spread around but with different biases - thus SMT for "tech" companies, and so on. I'd have thought that rebalancing among them would be perfectly reasonable. More precisely, rebalancing among different collective investments might be sensible.

takesyourchances

kidmugsy wrote: »

People hymn the praises of (say) annual rebalancing between asset classes. I imagine that rebalancing among the shares of ordinary individual companies is too messy.

But what about ITs? Unlike normal individual companies their investments are spread around but with different biases - thus SMT for "tech" companies, and so on. I'd have thought that rebalancing among them would be perfectly reasonable. More precisely, rebalancing among different collective investments might be sensible.

That was my kind of thinking at first with bringing SMT in with the other global IT's I hold that it offered different biases as in SMT with "tech" etc, Murray Int is different and Bankers and so on.



Your post put across better my thoughts on it at first.

Audaxer

kidmugsy wrote: »

People hymn the praises of (say) annual rebalancing between asset classes. I imagine that rebalancing among the shares of ordinary individual companies is too messy.

But what about ITs? Unlike normal individual companies their investments are spread around but with different biases - thus SMT for "tech" companies, and so on. I'd have thought that rebalancing among them would be perfectly reasonable. More precisely, rebalancing among different collective investments might be sensible.

I would think if you have ITs in all different sectors it would be of benefit to rebalance, maybe once a year back to your original portfolio percentages. If you were relying on income from dividend producing ITs or funds, I assume it would still be a good idea to rebalance as you would be selling some capital from good performers which would reduce the future dividends, but would obviously increase the future dividends from the IT/funds you were buying more of. I suppose it would depend on the different yields as to how it would affect your overall income?