Investment Trusts Investing

A few key differences to look out for:

  • Underlieing portfolio and methodology
  • Discount / premium to Net Asset Value
  • Costs
  • Gearing
  • Liquidity and bid-ask spreads, as I’ve noted recently some Investment trusts have low liquidity and very high spreads, I have seen up to around 4%.
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An article from November 2023, however still relevant, I’m tempted to swap some VWRP into FCIT for some downside protection.

if investors agree with Paul’s view that valuations are looking elevated in the dominating mega-cap tech names, casting the net across a broader range of equites is likely to be more beneficial, and the recent widening of the Discount may present a good entry point for long-term investors.

10 Year comparison:
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5 Year comparison:
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1 Year comparison:
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Discount/Premium:

Sorry on the poor scale of the Discount/Premium, but worth noting in the last year, the discount to NAV has widened 7%.

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I :heart: the JP Morgan ones and have gone big on JGGI and JAM over the last week. Got a few of JEGI knocking about as well.

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I’m also a fan. I hold JGGI, JAM, JUSC and JMG across my Isa and Sipp.

Holding four trusts from one manager does make me a little twitchy but, for my money, they’re better than many of the alternatives in their respective sectors.

I hold trusts from managers such as BG, Fidelity, Blackrock, AVI and Allianz which negates the risk a bit and gives me a blend of investing styles.

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JAM is big on tech stocks I think are overvalued right now, hence not currently on my radar. It has a good track record and I do keep an eye for entry points.

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Yeah, it’s tech-heavy, same with JGGI, and I wouldn’t load up on either today.

I use JAM as an S&P 500 proxy. A combination of good stock picking and leverage has helped it outperform with remarkable consistency.

The pair trade relatively tightly to par. I like having a couple of core holdings that don’t swing too wildly from premium to discount and vice versa.

Has anyone been buying ITs lately?

I’ve been looking at HGEN as a new entry post today’s update.

I’ve invested into Aberforth Smaller Companies (ASL) recently, at a discount of around 11-13%.

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I’m buying a house atm so I’ve eased up on investing.

From what I gather, ASL is a well regarded trust.

HGEN’s an interesting one. I just don’t trust myself with relatively esoteric trusts like this.

I know it’s had a tough time for a few years, so now may be a good time to buy in.

I just don’t understand it well enough, and likely never will, to put my money where my mouth is.

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One that is on my radar for when the buying resumes is AWEM, an emerging markets trust.

I’ll be keeping an eye on the proposed merger which should hopefully add liquidity.

https://www.theaic.co.uk/how-to-vote-your-shares

@Bogi.H Could Trading212 consider supporting voting for Investment Trusts?

Also - I quite like this IT sub stack:

It comes across better written than the Fool, but still DYOR as it’s not recommendations nor a full analysis of ITs potential true value / worth.