Investment Trusts Investing

A few more Investment Trust and their equivalent funds :smiley:
It also indicates their correlation based on a source from 2021.

It could be a good starting point for further research :smiley: .

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Link: https://www.investorschronicle.co.uk/news/2021/03/12/investment-trusts-versus-their-sibling-funds/

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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 Iโ€™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, Iโ€™m tempted to swap some VWRP into FCIT for some downside protection.

if investors agree with Paulโ€™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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Iโ€™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, theyโ€™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, itโ€™s tech-heavy, same with JGGI, and I wouldnโ€™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 donโ€™t swing too wildly from premium to discount and vice versa.