Basket of ITs

hallmark

I basically have three chunks of share-type investments.  An AJ Bell SIPP (Gilts & value ETFs), a Vanguard SIPP (LS75) both deliberately dull.

The "racier" chunk is going to be an II ISA that I want to setup as a basket of decently yielding ITs with a regular investment into all of them that's approx the value of 1/12th the total yield.

Once setup it shouldn't need much maintenance (just corporate events)

Here's my draft selections, any critiques/alternatives?

Avg yield approx 5.35% (first column), avg charges approx 0.82%

7.21% AAIF abrdn Asian Income Fund Asia Pacific Equity Income

7.01% BRWM BlackRock World Mining Commodities & Natural Resources

7.08% BIPS Invesco Bond Income Plus Debt - Loans & Bonds

8.71% NCYF CQS New City High Yield Fund Debt - Loans and Bonds

6.59% EAT European Assets Trust European Smaller Companies

0.41% SMT Scottish Mortgage Investment Trust Global

1.28% FCIT F&C Investment Trust Global

2.11% ALW Alliance Witan Global

4.04% HINT Henderson International Income Global Equity Income

4.22% MYI Murray International Trust Global Equity Income

2.91% SAIN Scottish American Global Equity Income

6.02% BBGI BBGI Global Infrastructure S.A. Infrastructure

7.65% INPP International Public Partnerships Infrastructure

8.81% SEQI Sequoia Economic Infrastructure Income Infrastructure

3.42% NAIT North American Income Trust North America

5.93% CTPE CT Private Equity Trust Private Equity

8.77% SUPR Supermarket Income REIT Property - UK Commercial

5.31% MRC Mercantile Investment Trust UK All Companies

4.74% CTY City of London Investment Trust UK Equity Income

4.73% MRCH Merchants Trust UK Equity Income

Hoenir

BBGI - is in the process of being taken over and delisted. The takeover price is fixed no real value to be had. 

BRWM - is suffering at the moment. Miners need a catalyst to spark share prices. Income received has fallen as miners cut their own dividend payouts. 

NCYF - trades at a premium to NAV. 

PloughmansLunch

HINT is going to be swallowed up by JGGI in the near future which also has an ever-so-slightly smaller yield

ColdIron

You know that HINT is being rolled into JGGI (JPMorgan Global Growth & Income)?

https://citywire.com/investment-trust-insider/news/take-the-hint-jpm-global-swells-to-3-4bn-as-it-bags-another-trust/a2459339

Eyeful

1. I have no idea of your age, experience or what you are hoping to achieve with this portfolio.
2. To me it looks like you are an IT junky. 
3. The portfolio is too complex.
4. I expect you will loose a lot in fees & charges over the long term, that will end up in someone else's pocket
5. I would not say that your ISA is racier, just complex with too many components in it.
6. Investing for the long term, should be like watching paint dry, dull. 

phlebas192

A couple of years ago, I set up a similar basket of ITs which were specifically aimed at producing a stable income for our retirement rather than going after total return. I built the basket such that it would provide a decent spread of geographical markets, industry sectors, asset managers and differing yields (higher ones to produce income 'now', lower ones that are more likely to increase ahead of inflation). I came up with a list of 14 which is now 13 since I took the cash option when Witan merged with Alliance. Overall yield is 4.1%.

CLDN Caledonia Investments
CTY City of London Investment Trust
NCYF CQS New City High Yield
FCIT F&C Investment Trust
FEV Fidelity European
GSCT Global Smaller Companies Trust
HFEL Henderson Far East Income
ICGT ICG Enterprise Trust
INPP International Public Partnerships
MRCH Merchants Trust
MYI Murray International
NAIT North American Income
TRY TR Property

To my mind, 20 is too many to keep up with if you are intending it to be low maintenance. As other comments show, even when picking them you seem to have overlooked some significant corporate actions! There's probably also a lot of overlap in the underlying holdings so simply having a larger number of holdings doesn't necessarily increase diversification - eg, I took the cash from Witan because there simpy,wasn't enough difference in the holdings between Alliance and FCIT.

Linton

Far too many funds to be able to understand and manage:

I suggest you:
1)  keep any holding to at least 5% otherwise it is likely to contribute too little to your overall returns to be worth the extra hassle
2)  look at each IT in turn and ask yourself what unique features it is providing.  If you dont know drop it.
3) Once you have brought the number of funds down to a reasonable number (perhaps 10) use morningstar instant xray or trustnet portfolio to check the overall asset allocation and ensure it is reasonably well balanced and there are no unexpected omissions.   Morningstar instant xray  is much better but more hasssle.

hallmark

Thanks for the replies so far, especially regarding BBGI & HINT as I wasn't aware of either of those actions.

Re the critiques, I'm aware there's a fair bit of overlap & that I could probably achieve very similar diversification with fewer selections but I don't mind being a bit over-diversified sometimes.  Essentially this will replace what was a HYP of self-selected UK shares as I've slowly come round to the notion that a basket of ITs is superior (more diversified, possibly smoother dividend streams, less temptation to tinker).

I'm late 50s & don't mind an average of .82% on fees, I agree that'd be way too high for somebody in their 20s looking to invest for the very long term.

Re being an IT Junkie, this will be about 15% of what I have invested, the far bigger chunk is in the SIPPs. To me this is the slightly more fun, slightly more racy pot.

I'll have a ponder on reducing the number of holdings & see what it looks like.

Bravepants

I was thinking of spreading this year's ISA allocation between CTY, MRCH and MYI, giving me some extra average monthly income of about £100 at current yields. That's probably racy enough for me. 

Hoenir

hallmark said:

I'll have a ponder on reducing the number of holdings & see what it looks like.

Ten should be adequate to provide a broad diversification into less mainstream investments. Also sufficient to keep track of and monitor on a frequent basis. 

DRS1

On the basis that no-one with any sense should invest in anything I hold I should warn the OP that I hold AAIF, EAT and NAIT.  Only NAIT is up since I bought it.

By the way how did SMT worm its way into a basket of decently yielding ITs?  Is it because it is a dividend hero?