Basket of ITs

hallmark

Good spot.

Bit of a long story but basically I'd been fully in cash for awhile until about 3-4 years ago & when I started investing again I bought a bunch of fairly random stuff.  Over time I've kept some, got rid of others and streamlined my shares investments as per the first post of this thread.   I'd already purchased BIPS, CTY, NAIT & SMT,  so just decided to keep those and add others, presuming that the aggregate yield at least would be 5% or so.

hallmark

FWIW this is what I settled on:

NAIT North American Income Trust USA

FCIT F&C Investment Trust Global

MYI Murray International Trust Global Equity Income

BIPS Invesco Bond Income Plus Debt - Loans & Bonds

AAIF Abrdn Asian Income Fund Asia Pacific Equity Income

SEQI Sequoia Economic Infrastructure Income Infrastructure

SUPR Supermarket Income REIT Property - UK Commercial

CTY City of London Investment Trust UK Equity Income

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

INPP International Public Partnerships Infrastructure

ESCT European Smaller Companies Trust European Smaller Companies

ALW Alliance Witan Global

BRWM BlackRock World Mining Commodities & Natural Resources

Yield currently over 5%.  Fees average .89%

Performance pretty decent so far but that's pretty meaningless, most things have done well since March.

wmb194

hallmark said:

FWIW this is what I settled on:

NAIT North American Income Trust USA

FCIT F&C Investment Trust Global

MYI Murray International Trust Global Equity Income

BIPS Invesco Bond Income Plus Debt - Loans & Bonds

AAIF Abrdn Asian Income Fund Asia Pacific Equity Income

SEQI Sequoia Economic Infrastructure Income Infrastructure

SUPR Supermarket Income REIT Property - UK Commercial

CTY City of London Investment Trust UK Equity Income

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

INPP International Public Partnerships Infrastructure

EAT European Assets Trust European Smaller Companies

ALW Alliance Witan Global

BRWM BlackRock World Mining Commodities & Natural Resources

Yield currently over 5%.  Fees average .72%

Performance pretty decent so far but that's pretty meaningless, most things have done well since March.

Following its merger with another IT, in this past week EAT delisted and its shares have been converted into shares in ESCT, The European Smaller Companies Trust plc.

"For Shareholders that elected (or are deemed to have elected) to receive New ESCT Shares:

each Ordinary Share with A rights attached to it will roll over into approximately 0.428444 New ESCT Shares"

https://www.londonstockexchange.com/stock/ESCT/the-european-smaller-companies-trust-plc/company-page

hallmark

Yes the EAT holding is ESCT now as I opted for the "do nothing" option.

poolboy

Why drop mrch, I m into cty and mrch.  Formers had a strong run this year.  As said it really is like watching paint dry, mrch has a decent yield 5.3% at Fridays close.

hallmark

Nothing against MRCH but I wanted CTY. It was a bit too much UK to have both

Alexland

If you are buying these for long term yield it's worth considering the 5 year divi growth rate on the AIC website as even dividend heros can fail to grow their income to keep up with inflation.

As with any active investment the danger is you might only be selecting these now because they have performed well recently and that may fall away as other investment styles come back into favour in the future economic conditions.

phlebas192

Alexland said:

If you are buying these for long term yield it's worth considering the 5 year divi growth rate on the AIC website as even dividend heros can fail to grow their income to keep up with inflation.

As with any active investment the danger is you might only be selecting these now because they have performed well recently and that may fall away as other investment styles come back into favour in the future economic conditions.

This is certainly true, although if you are in it for the long term then the 5 yr performance isn't that important. I have data for CTY going back 25 years and its dividend has increased by 4.4% per year over that period compared to the 2.3% that AIC reports over the past 5. 

nb: the past 5 years has been poor due to the impact of Covid when companies cut or suspended their dividends and ITs like CTY had to use their reserves to continue their track record of increasing their own dividend. Since then they have been rebuilding the reserves so have been limiting their annual increases.Once that process is complete it is reasonable to assume a return to above inflation increases.

OTOH, CTY's share price performance is a recent phenomenon that shouldn't be expected to continue. It's outperformance has been largely down to the share price going from a modest discount to a small premium and obviously isn't something that can be repeated - if anything the opposite should be expected as there is no obvious reason why it should ever trade at a premium given its portfolio.

hallmark

My current strategy is to reinvest all dividends. I intend to setup a regular investment into each IT.  It'll be equal amounts per IT per month. Hopefully this'll smooth out returns.

aroominyork

If this basket of ITs represents 15% of your invested money and is just a bit of racy fun, yet you are adding to each IT each month, what kind of microscopic attention do you give to your serious investments? 
Also, there is no mathematical logic in thinking that adding equal amounts to each IT each month will smooth out returns. That's not how rebalancing works.