Independent Investment Trust (IIT)

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StellaN
StellaN Posts: 354 Forumite
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in Savings & investments
I have been thinking of investing in IIT for some time but not at the average high premiums over the past 12 months, however it is now at a fairly low premium. I am hesitating for two reasons a) I can't understand why it is in the global IT sector when it is mainly invested in UK smaller companies and b) with the uncertainty of Brexit if we don't achieve a reasonable deal as far as the markets are concerned will this not have a major impact on UK smaller and mid-cap companies and de-value the pound? Any thoughts on this would be good.

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  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    edited 16 September 2018 at 12:19AM
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    At a relatively simplistic level I would think a devalued GBP would be good for small / mid cap stocks, assuming they are exporters. Obviously if a company's major consumables are bought in foreign currency then devaluation would be bad for them.

    The other thing investors need to be cognisant of is that there might be a disconnect between stock prices and the reality of the impact on stocks.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • ArchBair
    ArchBair Posts: 153 Forumite
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    IIT has done really well since it's inception with the ex SMT manager at the helm. However, like you I would be concerned about investing at the moment even though the premium has dropped significantly. Maybe a more global IT would be the best option at the moment?
  • MPN
    MPN Posts: 365 Forumite
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    IIT is a global because it does invest in other countries although most of its holdings (approx 88%) are in the UK. It is also a high conviction highly concentrated IT in that the top 10 holdings make up 65% of its assets. However, at the current premium of just 1.47% compared to the 12 month average premium of 11.58% it looks a very good time to invest if this IT interests you. Regarding the Brexit no deal scenario unfortunately nobody knows the outcome for UK funds/shares in general.
  • StellaN
    StellaN Posts: 354 Forumite
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    I decided to buy a small holding in IIT today as part of my overall UK allocation in my ISA. It seems a reasonable share price and at a comparatively low premium.
  • Sue58
    Sue58 Posts: 288 Forumite
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    StellaN wrote: »
    I decided to buy a small holding in IIT today as part of my overall UK allocation in my ISA. It seems a reasonable share price and at a comparatively low premium.

    Hope it does well for you but personally I won't be investing any more of my money into funds or IT's that are heavily invested in the UK until we have some idea of the outcome of Brexit. There are plenty of other regions/sectors and asset classes to consider.
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