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  • FIRST POST
    • StellaN
    • By StellaN 15th Sep 18, 10:57 PM
    • 241Posts
    • 97Thanks
    StellaN
    Independent Investment Trust (IIT)
    • #1
    • 15th Sep 18, 10:57 PM
    Independent Investment Trust (IIT) 15th Sep 18 at 10:57 PM
    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.
Page 1
    • cloud_dog
    • By cloud_dog 16th Sep 18, 12:17 AM
    • 3,845 Posts
    • 2,284 Thanks
    cloud_dog
    • #2
    • 16th Sep 18, 12:17 AM
    • #2
    • 16th Sep 18, 12:17 AM
    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.
    Last edited by cloud_dog; 16-09-2018 at 12:19 AM.
    Personal Responsibility - Sad but True

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    • ArchBair
    • By ArchBair 16th Sep 18, 12:21 AM
    • 110 Posts
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    ArchBair
    • #3
    • 16th Sep 18, 12:21 AM
    • #3
    • 16th Sep 18, 12:21 AM
    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
    • By MPN 17th Sep 18, 3:08 PM
    • 275 Posts
    • 105 Thanks
    MPN
    • #4
    • 17th Sep 18, 3:08 PM
    • #4
    • 17th Sep 18, 3:08 PM
    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
    • By StellaN 17th Sep 18, 5:14 PM
    • 241 Posts
    • 97 Thanks
    StellaN
    • #5
    • 17th Sep 18, 5:14 PM
    • #5
    • 17th Sep 18, 5:14 PM
    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
    • By Sue58 18th Sep 18, 11:23 AM
    • 134 Posts
    • 36 Thanks
    Sue58
    • #6
    • 18th Sep 18, 11:23 AM
    • #6
    • 18th Sep 18, 11:23 AM
    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.
    Originally posted by StellaN
    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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