Buy Capital Gearing Trust?

ChilliBob

Trojan X ironically is one of the best returns in my portfolio, there's only one other sitting at double digits. If you're looking at this area I'd certainly consider it 

Shocking_Blue

ChilliBob said:

Trojan X ironically is one of the best returns in my portfolio, there's only one other sitting at double digits. If you're looking at this area I'd certainly consider it 

The performance between Trojan X and PNL seems very similar.



Am I right in thinking there's an initial 5% charge for Trojan X? The OGC also seems a little higher.

ColdIron

Same manager, same style. No retail platform charges an initial fee these days

Shocking_Blue

ColdIron said:

Same manager, same style. No retail platform charges an initial fee these days

Thanks. Must be old info on iWeb re the initial charge.

ChilliBob

Yeah Iweb often have this charge nonsense, but it hardly if ever applies. 

PNL basically is the Investment Trust equivalent of Trojan X really. So, depends what you like really and what platform you have. Obvs you get 0.5% stamp on the IT. 

aroominyork

Shame there's no open ended version of CGT. After all, 0.5% is 0.5%.

NedS

aroominyork said:

Shame there's no open ended version of CGT. After all, 0.5% is 0.5%.

Yes, but if you plan on holding it for any length of time, it becomes almost irrelevant. Especially if you hold on a platform such as HL which charges 0.45% per year for holding OEICs and caps the fees for ITs thus paying for itself in the first year. I would also argue that a closed end structure is more efficient as the manager isn't subject to inopportune inflows or outflows and can also take advantage of leveraging, if permitted by the board, to further enhance shareholder returns (or losses).

ChilliBob

There's pros and cons to both structures, depends on your circumstances really. I hold both structures for different things and via different platforms. I do find the stamp duty harder to swallow with something which is likely to yield a lowish return (obviously with lower risk) as it represents a larger chunk of the returns. All academic in years gone by yes! 

aroominyork

I'm with Interactive Investor so pay a fixed fee. 
I don't think CGT uses leveraging. It would be a curious thing for a wealth preservation fund to do since it adds risk.

Bobziz

aroominyork said:

Shame there's no open ended version of CGT. After all, 0.5% is 0.5%.

CG absolute return fund ?