Does any hold Schiehallion fund in their ISA? I found it in T212 but it doesn’t seem very active, the numbers are grey and there’s no chart available… does anyone know what’s going on with it?
@Dougal1984 does, he’ll give you the lowdown.
I’ve been tempted to add it too but I have exposure to many of the companies via other BG trusts, which are cheaper, tighter in terms of premium/discount and spread, and much more liquid.
Well it has on average say 15-20 trades a day, and trades around a 40% premium to its NAV
Then there is also MNTC, which IIRC is only 32% invested but trades at a 30% premium to NAV
So you have the choice of either, but remember the premium you are paying to get it.
Alternatively this award winning Schiehallion is trading at par:
Been trying to buy this for a few days now, no success. Will the order go through quicker if I buy fewer shares at a time?
Does the low liquidity worries you, when you would want to sell your shares?
Specially during selloffs or troubled markets? (with a lot of sellers and few/no sellers)
Not in a long game no.
Look up the history. It was initially launched to high net worth investors only, with a long term mindset. It launched 2019 but only got added to 212 in June if memory serves right.
Some or most ITs have some liquidity issues, I don’t know if that is because of them and/or the stock exchange segment they are in. Or even due to their market makers or their nonexistence.
Due to that I have some reluctance in investing in ITs, although I find some of them, interesting financial instruments.
Thats like saying it may or may not rain where you are tomorrow
May or may not rain is a binary reality/probability, that mutually excludes each other. And it has only 2 possible outcomes. (Statistics)
And some or most of a “thing” that have some specific characteristics isn’t a binary outcome.
It could have various possible outcomes:
- “some” could be any number of observations
- “most” is a majority, it could be a higher majority of number of observations (almost 100%, if it was “all”, it would be 100%) or a lower majority number of observations (50.xxxx%)
Back to ITs’ liquidity, they have several liquidity degrees, some are more liquid than others, e.g. SMT vs. MNTN.
Having only one stock exchange and in GBP, that limit a quite the liquidity. Also knowledge and/or information about ITs outside UK is rather small.
Let’s agree to disagree on this one.