Hargreaves puzzler

redux

I found an HL article saying which are the most popularly traded investment trusts on their platform.

You can probably guess 6 or so before you look.

Thrugelmir

tin586 wrote: »

The likes of Scottish Mortgage (a constituent of the FTSE 100), F&C, Alliance, City of London have large market caps and are very liquid.

HL held £91.6 bn in assets in 2018. Net new business for the year was £7.6bn

Market values

SMT £8bn
FCIT £4.16bn
ATST £2.5bn
CTY £1.7bn

Far easier to direct customers towards open ended funds as has been previously mentioned.

The larger a fund becomes the more difficult to manage effectively. Size in itself may become a problem. Managing fund inflows and outflows will start to drive stock prices. Rather than underlying fundamentals.

tin586

Thrugelmir wrote: »

HL held £91.6 bn in assets in 2018. Net new business for the year was £7.6bn

Market values

SMT £8bn
FCIT £4.16bn
ATST £2.5bn
CTY £1.7bn

Far easier to direct customers towards open ended funds as has been previously mentioned.

The larger a fund becomes the more difficult to manage effectively. Size in itself may become a problem. Managing fund inflows and outflows will start to drive stock prices. Rather than underlying fundamentals.

Erm... a closed-ended fund such as an IT is traded on an exchange and does not have to manage inflows and outflows.

dividendhero

:Can you imagine if medical profession followed same ethics as financial services? :eek:

Ah yeah, it's OK to reuse hypodermic needles on patients - they'll never notice and item 472 of the small print allows us to..and the regulator won't bother checking anyway

Thrugelmir

tin586 wrote: »

Erm... a closed-ended fund such as an IT is traded on an exchange and does not have to manage inflows and outflows.

Erm... HL has to direct it's new business (funds) somewhere. Even the largest IT's are dwarfed by the wall of money

What's not been mentioned is that the number of listed companies has gradually been reducing over the years. Making choices available more and more restricted.

dividendhero

Thrugelmir wrote: »

Erm... HL has to direct it's new business (funds) somewhere. Even the largest IT's are dwarfed by the wall of money

So why do so many trade at a discount? Even in the case of those at a premium it's usssually only a few perecent

Thrugelmir wrote: »

What's not been mentioned is that the number of listed companies has gradually been reducing over the years. Making choices available more and more restricted.

Not the case in Guernsey apparently