Artemis Global Select vs Mid Wynd

MPN

ArchBair wrote: »

Mid Wynds premium is now 3.2 so if you don't want to pay it just choose the OEIC Global Select instead and you don't pay the extra costs involved to buy it neither.

Yes, I tend to agree that now Mid Wynd is trading at a premium Artemis Global Select is a good option and as you say without the extra costs involved in buying the IT.

aroominyork

Presumably people who don't want to pay a premium for an IT would buy it at par, so assume their concern is that Mid Wynd's price falls by 3%, the current premium. Over five years the IT has outperformed the OEIC by an annualised 2%, so if you prefer the holdings of the IT you could reasonably hope to 'break even' after 18 months.

I find it curious how people refuse to pay a premium for an IT which they otherwise want to buy, think will perform well and hence might well maintain its premium. They seem to prefer paying a higher price so long as no premium is involved.

ArchBair

aroominyork wrote: »

Presumably people who don't want to pay a premium for an IT would buy it at par, so assume their concern is that Mid Wynd's price falls by 3%, the current premium. Over five years the IT has outperformed the OEIC by an annualised 2%, so if you prefer the holdings of the IT you could reasonably hope to 'break even' after 18 months.

I find it curious how people refuse to pay a premium for an IT which they otherwise want to buy, think will perform well and hence might well maintain its premium. They seem to prefer paying a higher price so long as no premium is involved.

There is also stamp duty costs associated with IT’s especially if you are buying a large number of shares.

StellaN

ArchBair wrote: »

There is also stamp duty costs associated with IT’s especially if you are buying a large number of shares.

I'm not sure I would choose the Global Select fund over the Mid Wynd IT even if you have to pay the 0.5% stamp duty. The premium is also quite low at 3% and it is not one of the very volatile global IT's in its sector. Mid Wynd has delivered better returns than the fund over 1, 3, 5 & 10 year periods. Therefore in my opinion the payment for stamp duty and risk with premium/discounts are more than rewarded in the long term.