To go with SMT

ANGLICANPAT

I have sold  towards  half  my grandchilds SMT  holding  , sending some cash to fund CTF and new cash JISA  .This leaves just 7k cash  in their bare trust , to  reinvest .    Id thought another  investment trust  (as HL doest charge for them)  a global growth one perhaps  that will  not overlap with  SMT holdings  too much .   I had in mind  a bit more healthcare ,  and ' 'green'  type holdings  that will help people through the Covid  periods  but with my inexperience of how to search when theres so many  IT funds,  I've drawn a blank so far . I presume  there may be a marked drop in the markets which may last a fair while , hence  wish for no charges , and am not wanting  anything too volatile . Does anyone have any suggestions for me to look at  please ? (Or alternative strategies for that matter if what Im looking for doesnt exist)   

AnotherJoe

On the "green" side, I hold INRG and TRIG. INRG fairly  volatile as US based so the dollar is mixed in there. Solar and wind index.

Less volatile (and less stellar but with 5% annual dividend baked in) is TRIG a UK company that invests in wind farms (maybe solar as well, can't recall) they get 20-30 year long contracts to operate and thats where the 5% comes from.  I reinvest the income in that one. With INRG i expect most of the growth to come from company growth not dividends.

All these work well with HL in terms of not being charged fund fees every year.

My grandkids have INRG, SMT and HMWO (global indexed ETF) in their JISAs (with HL).  Next year I'll likely add a small companies fund /IT.  I regard it as a complete no-brainer that wind and solar will overtake / destroy fossil fuels and hence great investments for the grandkids. Luckily enough people still haven't caught on to that yet so theres plenty of room for growth both because these technologies will grow and because people will eventually catch on to investing in them as it becomes clear to even the most hardened sceptics that coal, oil and gas are dumpster fires. Just look at Shell and BP past week.

I own one healthcare IT, WWH you could look at, I must have selected it from others on some basis but that escapes me now. Maybe there are better?  I previously dabbled in biotech funds/ITs but this is more general a bit of everything, eg bandages to biotech.

 

ANGLICANPAT

Thanks  Joe . Funnily enough WWH was one I did see and liked,  but  it looked expensive at 1.16% ish (from memory ) compared to being spoilt  by SMT charges  I put it to one side . Will revisit  thanks. Definitely agree on the fossil fuel side view. Do you think £7k is too little to split between either TRIG or  WWH and one other more general one  Ive been looking at --Royal London Sustainable World Trust?  

Thrugelmir

Have you looked at Impax Enviromental Markets PLC. (IEM)

ANGLICANPAT

Thanks  Thrugelmir, thats another useful looking one to consider , its a little  bit cheaper than WWH too.

Thrugelmir

ANGLICANPAT said:

Thanks  Thrugelmir, thats another useful looking one to consider , its a little  bit cheaper than WWH too.

Seems to trade a constant premium though.  One suspects that the space they've successfully occupied for a while will soon become increasingly crowded. 

ANGLICANPAT

Thrugelmir said:

Seems to trade a constant premium though.  One suspects that the space they've successfully occupied for a while will soon become increasingly crowded. 

I like the idea of more   'green' type funds , and I think  they will be very popular and successful for a while , but I wonder if they  will have their day , but  at some point in the future competition and greed and possibly unknown  situations, may cause environmental progress , to lose its momentum and  start to go backwards again . 

AnotherJoe

ANGLICANPAT said:

Thanks  Joe . Funnily enough WWH was one I did see and liked,  but  it looked expensive at 1.16% ish (from memory ) compared to being spoilt  by SMT charges  I put it to one side . Will revisit  thanks. Definitely agree on the fossil fuel side view. Do you think £7k is too little to split between either TRIG or  WWH and one other more general one  Ive been looking at --Royal London Sustainable World Trust?  

Well mine will have about £6k in HMWO and £3k each in SMT, INRG and probably a smaller companies investment next year so that woudl fit with what I"m doing.  I wont be regularly contributing so the plan is just to leave them to grow over the next 15-20 years.

csgohan4

Looks like SMT are going cosmic, they were 860 when I looked last month, they've increase by 100p, shocking, should have dumped money when I had the chance, Sadly I think the boat has sailed probably. 

Do you think it's risky to invest more money in?  Was thinking of dumping 15k into it, but the passive investor in me, thinks I should dump into an active global fund like fundsmith

But if I wanted more US tech a passive fund seems reasonable as well: https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/legal-and-general-global-technology-index-class-i-accumulation

AnotherJoe

SMT is an active global fund ? Just very different philosophies about which companies to invest in. You could always go 50/50. The ride will always be more fun with SMT though. 

I would certainly invest £15k in it myself, in that im still holding my position and it's much larger than £15k. Not sure if it was you but I recommended it to someone else last month or so at around 800 and they said they were waiting for a pullback.  Oops. 

Thing is any successful investment is, most of the time, going to be at or near an all time high. So that shouldn't put you off. 

Note that they sold some Tesla end of August so that makes it less unbalanced than it was (Tesla was maybe 15% or even more the fund at one point). That money will go into other companies they have in their radar. 

I've got a lot of confidence in the fund managers, I heard a podcast on the bbc with them maybe a year ago when their Tesla investment was being queried LOL (I already held SMT at that point)

csgohan4

AnotherJoe said:

SMT is an active global fund ? Just very different philosophies about which companies to invest in. You could always go 50/50. The ride will always be more fun with SMT though. 

I would certainly invest £15k in it myself, in that im still holding my position and it's much larger than £15k. Not sure if it was you but I recommended it to someone else last month or so at around 800 and they said they were waiting for a pullback.  Oops. 

Thing is any successful investment is, most of the time, going to be at or near an all time high. So that shouldn't put you off. 

Note that they sold some Tesla end of August so that makes it less unbalanced than it was (Tesla was maybe 15% or even more the fund at one point). That money will go into other companies they have in their radar. 

I've got a lot of confidence in the fund managers, I heard a podcast on the bbc with them maybe a year ago when their Tesla investment was being queried LOL (I already held SMT at that point)

Do you have  concerns being that one company is over 10% of the whole fund?