investments trust for income

MichelleN

Linton wrote: »

I would question your forecast as the £ is low because markets hate uncertainty and so equities, at least the big ones that are priced on a global market, are high in £ terms. A Tory win and quick BREXIT would remove uncertainty causing the £ to rise against other currencies, resulting in global company equities to fall in £ terms.

As UK investors we really would do better with a hung parliament.

Sadly we never know what the future will bring so on average it is best not to wait as equities broadly rise in price over time and the longer the time for which you are invested the higher your return.

However, if the Tories win and deliver Brexit you would expect CTY and other UK Equity Income IT's share price to rise. If it is a hung parliament or Labour win then surely the share price and the pound will drop?

NedS

MichelleN wrote: »

However, if the Tories win and deliver Brexit you would expect CTY and other UK Equity Income IT's share price to rise. If it is a hung parliament or Labour win then surely the share price and the pound will drop?

A rise in the pound may offset any rise in share price. Likewise, a fall in the pound could offset any fall in the share price. So regardless of the outcome of the election / BREXIT, the net effect could be no large change in either direction assuming the movement in the pound largely offsets any share price movement.

However, in the long term it will all be largely irrelevant, hence the phrase time in the market, not timing the market.

cloud_dog

Markets like certainty, irrespective of the underlying implications of a party.

Thrugelmir

cloud_dog wrote: »

Markets like certainty, irrespective of the underlying implications of a party.

Stability. A Labour Government under Corbyn could unleash any number of what might be regarded as anti business initiatives.

arnoldy

Let's have a look at their top 10 holdings

GlaxoSmithKline 4.1
Diageo 3.7
Royal Dutch Shell 3.3
BP 2.8
Tesco 2.5
National Grid 2.4
AstraZeneca 2.3
British American Tobacco 2.3
Relx 2.2
HSBC 2.1

[/QUOTE]



Also why pay them circa 0.8% not including dealing charges or stamp duty for these stocks you could easily buy yourself?

MichelleN

arnoldy wrote: »

Let's have a look at their top 10 holdings

GlaxoSmithKline 4.1
Diageo 3.7
Royal Dutch Shell 3.3
BP 2.8
Tesco 2.5
National Grid 2.4
AstraZeneca 2.3
British American Tobacco 2.3
Relx 2.2
HSBC 2.1

Also why pay them circa 0.8% not including dealing charges or stamp duty for these stocks you could easily buy yourself?[/QUOTE]

If you are referring to CTY, then it had the following top 10 holdings on 31/10/2019 according to Trustnet.

TOP HOLDINGS (31/10/2019)
Rank Largest Holdings %
1 ROYAL DUTCH SHELL 6.20
2 HSBC HLDGS 3.90
3 DIAGEO 3.60
4 BP 3.50
5 UNILEVER 3.10
6 LLOYDS BANKING GROUP PLC 3.00
7 BRITISH AMERICAN TOBACCO 2.80
8 RELX NV 2.70
9 GLAXOSMITHKLINE 2.60
10 PRUDENTIAL PLC 2.30

eskbanker

arnoldy wrote: »

why pay them circa 0.8% not including dealing charges or stamp duty for these stocks you could easily buy yourself?

Why would you compare apples and oranges?

Of course you could buy a small sample of ten large stocks that happen to be within an IT, but you're not achieving anything like the diversification of its full portfolio (or its ongoing rebalancing, etc), so it's a pointless comparison.

Taking your argument to its logical conclusion, why buy ten FTSE100 blue-chips when you could just buy one?

Thrugelmir

eskbanker wrote: »

Taking your argument to its logical conclusion, why buy ten FTSE100 blue-chips when you could just buy one?

Diversification. Diversification. While some share prices rise other fall. That's the nature of markets.

Linton

arnoldy wrote: »

Let's have a look at their top 10 holdings

GlaxoSmithKline 4.1
Diageo 3.7
Royal Dutch Shell 3.3
BP 2.8
Tesco 2.5
National Grid 2.4
AstraZeneca 2.3
British American Tobacco 2.3
Relx 2.2
HSBC 2.1



Also why pay them circa 0.8% not including dealing charges or stamp duty for these stocks you could easily buy yourself?

Some reasons...

1)These holdings represent 28% of CTYs portfolio. What about the other 72%? CTY invests in 102 companies in total.
2) Had you heard of RELX? Would you have invested in it?
3) If you only held these shares and one got into difficulties you would lose 10% of your income. 10 companies is too small a portfolio for long term stability and safety.
4) Managing a share portfolio takes time, effort and knowledge to stay informed of the financials of each of your investments. Are you prepared to do this?
5) The dealing and platform charges you would pay are probably a lot higher than the charges CTY pay as a % of portfolio size. Especially if you have a relatively small portfolio and a sensible number of different holdings.

eskbanker

Thrugelmir wrote: »

Diversification. Diversification. While some share prices rise other fall. That's the nature of markets.

Indeed, the question was rhetorical!