Portfolio Allocation: Critique Welcome

ColdIron

If you were looking to buy anyway, the premium is lower than it has been for several years now. Naturally DYOR and read the factsheets and annual reports. This is a commentary of recent events. Carillion is one of its subcontractors. I trust you realise this wasn't a recommendation, just an example of the effect of the share price on the premium

Thrugelmir

Audaxer wrote: »

I see that HICL's premium is now down to 3.84%, and the share price is down by 1.92% this year, but the NAV is up 7.14% this year. Does that indicate it would be a good time to buy it, or in view of what you are saying is it one to avoid?

Not a fund I hold personally. As a consequence I've no view. All I can do is reiterate the point that research is key before making any investment decision. One shouldn't buy something simply because it looks cheap (relatively) or in vogue. Understand the particular risks that the fund is exposed too and weigh them up.

DennisTenus

Sorry if these are stupid questions but what does "x% of non-guaranteed, x% of self-invested" mean?

And do those percentages related to the % of the funds?

pip895

bostonerimus wrote: »

Indexers way if "knowing better" is to accept that they don't "know better". I admire the optimism of the active investor looking to time a yield curve or a stock price, but it's only the successful ones that seem to post on these forums. I suppose they have survived the lions. Those that fail to beat an indexing approach probably die of embarrassment rather than in a lion's jaws.

I wonder if beating index trackers with managed funds is really quite as hard as you seem to think.;)

I know taken as a whole investors in managed funds don't beat investors in passives but it would be a mistake to consider all managed fund investors as a single herd. The group that frequents forums like this - i.e. actively interested in investing, is rather different for example to those placed in some expensive closet tracker 10 years back by an FA employed by the bank that runs the fund, or indeed the investor that puts this years isa money in whatever it was that did best last year and then rushes to sell when the markets take a dive.