Investment Trusts Investing

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.

2 Likes

Hi @Topher, @Dougal1984 and all community, maybe an interesting page about ITs/OEICs/ETFs:

Browse Super 60 investments:

→ They have a downloadable PDF guide in that page:

→ Other perhaps interesting information from that site:

Most purchased investment trusts in Q4 2021

Source: interactive investor. Note: the top 10 is based on the number of “buys” between 1 October and 31 December 2021.

Most purchased ETFs in Q4 2021

Source: interactive investor. Note: the top 10 is based on the number of “buys” between 1 October and 31 December 2021.

5 Likes

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.

1 Like

This is an old article but it was an interesting read: A lifetime in investment trusts - John Kay

3 Likes

Nice article. Thanks.

1 Like
2 Likes

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?

1 Like

The following might be worth a look:

ATT - Allianz Technology
SMT - Scottish Mortgage
CHRY - Chrysalis Investments
GROW - Molten Ventures
VOF - Vinacapital Vietnam Opportunity Fund
HVPE - Harbourvest Global Private Equity
PHI - Pacific Horizon

(I own shares in all the above though, so they might not be the best picks.)

2 Likes

Which ITs have very large discounts to NAV?

1 Like

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!

1 Like

You can order all ITs by discount here: Compare investment companies | The AIC

1 Like

It seems that we think alike, at least partially. :wink:

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

2 Likes

Same, I have those three plus HVPE. Great minds and all that (hopefully) :smiley:

@Dougal1984 , are you there? :smiley:

Dougal is the IT discount expert, he is best person (I know) to discover the best IT bargains.

3 Likes

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.

:rofl: - 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

=INDEX(IMPORTHTML(“https://www.theaic.co.uk/companydata/0P00008ZOB","table”,1),2,4)

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.

4 Likes