Personal Assets Trust vs Trojan O Acc

Aminatidi

I know you say platform charges don't matter but maybe the purchase charges do depending whether this is a lump sum or drip feeding.

As for performance as mentioned with IT's you're at the mercy of premiums and discounts whilst with funds you're always only every dealing with NAV though PNL and CGT do have discount control mechanisms.

Example of how the premium/discount may have made a difference during the recent wobble.

But if you were buying that day you might have been able to take advantage of that.

For what it's worth I have around 80% of my investments split between the IT versions so CGT and PNL.

MarkCarnage

which is setting the bar just about as low as possible

Possibly even subterranean! 

To be fair, the benchmark is twice the bank rate, but b*gger all times 2 is still b*gger all! Perhaps they need to move it to cash plus a margin. I hold it, and it's done pretty well in last 3 months, having moved sideways for 2 years before that. It was bought as a diversifier.

CRAIGSVILLE1

I'm not really bothered with ethical funds, but the trojan ethical funds have been performing better than their normal funds ( just in case nobody has looked )

Prism

Aminatidi said:

I know you say platform charges don't matter but maybe the purchase charges do depending whether this is a lump sum or drip feeding.

As for performance as mentioned with IT's you're at the mercy of premiums and discounts whilst with funds you're always only every dealing with NAV though PNL and CGT do have discount control mechanisms.

Example of how the premium/discount may have made a difference during the recent wobble.

But if you were buying that day you might have been able to take advantage of that.

For what it's worth I have around 80% of my investments split between the IT versions so CGT and PNL.

Due to the premium to discount switch those are quite significant drops for the two trusts. I have 100% equity funds that only briefly dropped a few % more and these trusts are supposed to be very defensive. It could be that the fund versions of those trusts are really the place to be if someone is after lower volatility during crashes.

Ceme3000

I was doing the same charting in Trustnet yesterday as I want to lower the volatility on my SIPP now that it has recovered to pre covid amounts.  
How do people feel about VLS20 as either a low cost alternative or as a complementary fund to the wealth preservation IT's? 

Aminatidi

Prism said:

Aminatidi said:

I know you say platform charges don't matter but maybe the purchase charges do depending whether this is a lump sum or drip feeding.

As for performance as mentioned with IT's you're at the mercy of premiums and discounts whilst with funds you're always only every dealing with NAV though PNL and CGT do have discount control mechanisms.

Example of how the premium/discount may have made a difference during the recent wobble.

But if you were buying that day you might have been able to take advantage of that.

For what it's worth I have around 80% of my investments split between the IT versions so CGT and PNL.

Due to the premium to discount switch those are quite significant drops for the two trusts. I have 100% equity funds that only briefly dropped a few % more and these trusts are supposed to be very defensive. It could be that the fund versions of those trusts are really the place to be if someone is after lower volatility during crashes.

It was certainly an interesting experience because I have a good chunk in those two trusts and I was thinking to myself "hold on I've looked at all the back tests and they're not meant to do that?!".

I think as you say if you're looking at short term but seismic noise the funds may be a better place to be with the trusts maybe being better long term vehicles.

Aminatidi

Ceme3000 said:

I was doing the same charting in Trustnet yesterday as I want to lower the volatility on my SIPP now that it has recovered to pre covid amounts.  
How do people feel about VLS20 as either a low cost alternative or as a complementary fund to the wealth preservation IT's? 

Personally I tend to think of VLS40 as more comparable to PNL or CGT.

However it's an easier comparison to make with PNL as the equity allocation of PNL is much simpler and blunter than that of CGT.

Linton

Ceme3000 said:

I was doing the same charting in Trustnet yesterday as I want to lower the volatility on my SIPP now that it has recovered to pre covid amounts.  
How do people feel about VLS20 as either a low cost alternative or as a complementary fund to the wealth preservation IT's? 

Since VLS20 was launched it has provided better performance with less major volatility than Personal Assets and the other WP ITs.  However the same period has only seen one major crash and has also experienced  an unprecedented increase in the capital value of safer bonds in which VLS20 mainly invests. Sadly the fund was not around in 2000-2009 when circumstances were very different.  The WP ITs were around and did their job.

So I do not know how VLS20 would stack up for WP  and so would not rely on it for the majority of my Preserved Wealth.  On the "low cost" aspect,  since squeezing the last fractional %  performance out of the asset is not the objective when buying WP funds I dont see it as very relevent.

Sue58

Aminatidi said:

Ceme3000 said:

I was doing the same charting in Trustnet yesterday as I want to lower the volatility on my SIPP now that it has recovered to pre covid amounts.  
How do people feel about VLS20 as either a low cost alternative or as a complementary fund to the wealth preservation IT's? 

Personally I tend to think of VLS40 as more comparable to PNL or CGT.

However it's an easier comparison to make with PNL as the equity allocation of PNL is much simpler and blunter than that of CGT.

I agree VLS40 is far more comparable to PNL, CGT or the OEIC equivalents.
As Linton mentioned VLS20 has performed slightly better than these WP IT’s or Funds with a little less volatility, however the WP funds have around 35/40 per cent in equities so they would perform better than VLS20 with its static 80/20 risk exposure limits during bull markets.

Thrugelmir

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