Thanks. I’ve gone with VWRL because it’s more liquid and the spread’s tighter. I’ll reinvest the dividends anyway. I may eventually go with a 90:10 split between VEVE and VFEM which works out cheaper.
The simplest solution’s often best so I may just split the Fundsmith allocation between SMT and VWRL for the timebeing while I have a good read through annual reports for LTI, BNKR etc.
Quite an interesting article on this topic. Note however some trusts have changed strategies / management over the years and this is not entirely taken into account.
With the market as it is, I see a lot of investment trusts pricing at a discount as a ‘bargain’ right now for any spare cash. Any recommendations on what stands out as best in the IT bargain bin right now?
ATT (-15%) is at the top of my list right now. It’s one of the few investments to outperform SMT over the past 10 years. I’m also adding to HVPE at a 40%ish discount. I’d like to open a position in CHRY but there are so many opportunities, I don’t have enough capital to go around!
ATT - Allianz Technology → I have it
SMT - Scottish Mortgage → I have it
CHRY - Chrysalis Investments
GROW - Molten Ventures
VOF - Vinacapital Vietnam Opportunity Fund
HVPE - Harbourvest Global Private Equity
PHI - Pacific Horizon → I have it
I think that ITs are an interesting investment vehicle, specially in some specific areas, that other vehicles don’t offer. E.g. Direct Infrastructure/Renewables/Shipping/Music Royalties/Private Credit.
There are even ITs specialized in Leasing Aircraft, Structured Finance (CDOs, CLOs), Reinsurance, etc.
I thought investing in some of that areas via ITs. But so far, this year markets are less appealing, as those areas are a bit iliquid, that aggravate those ITs’ volatility.
- I was asking the opinion of others. Always need to take external input.
Yes I generally switch between mutual funds and Investment Trusts that are the same when I hold them to take advantage of the discount, and sell at a premium to that discount to make extra gains.
The AIC link above is good, but not 100% up to date.
Take one of my favourite ITs on Topher’s discount list:
The price/last close right now is a day behind, and the NAV is also calculated quarterly.
If we take the NAV as is, then 122/208 gives us a 42% discount, but you can make it more up to date using google sheets:
=googlefinance(“CHRY”,“price”) will pull in the latest price - 122.80GBX
And you can pull in the NAV using the URL from AIC.co.uk
So you can build a nice google sheet to monitor the premium/discounts. I use this and have some more formula with a ‘trigger’ to send me an email when to buy/sell the Trusts.
I’ve recently opened a position Mid Wynd International (MWY). I think there’s a lot to like about this trust and I may eventually promote it from a satellite to a core holding.
It’s chair, Prof Russell Napier, recently appeared on an interesting Investors’ Chronicle podcast: