Seraphim Space Investment Trust (SSIT)

There seems to be a fair amount of interest in this IT, so I thought I’d start a thread. I’m sure it’ll be added once IBKR get with the programme.

Although it piqued my interest, I won’t be investing for a few reasons. Firstly, I generally try to avoid thematic/faddish investments, which feel as if they have been dreamed up by marketeers.

And secondly, the fees are pretty darn steep at 1.43% ongoing, not including transaction costs. I think I remember reading that there is a 15% performance fee attached too. :flushed:

Lastly, I have fair exposure to SpaceX already through SMT and USA.

Don’t let me put you off though. I’d be interested to hear other people’s cases for investing.

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I’m interested purely by name. I haven’t researched the underlying holdings yet - how long have those companies ran for, where do they sit amongst their peers, do I already have exposure to them and so on.

I would be keen to see people’s thoughts/research.

On the performance fee part - there is no benefit to being a long term investor if you don’t time entry right. If I read correctly, the performance hurdle is 8% each year of the high watermark. Anything above that gets charged the 15% performance fee. If the performance isn’t met, then the high watermark is only increased about 1.44% a year.

So if it potters along at a quid for 5 years, then the watermark increases to £1.07 plus 8% a year so £1.16 before you get charged a ‘performance fee’.

If it increases in value by 7% steadily a year, so in year 5 it’s worth £1.4, you won’t have paid any performance fees.

Timing your entry to this one is key.

Imo, there should not be a high AMC plus additional performance fee.

Edit. Now available on InteractiveBroker so hopefully 212 can add:

https://www.interactivebrokers.com/en/index.php?f=2222&exch=lse&showcategories=STK&q=SSIT

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I missed the part about the 8% hurdle, that does soften the blow significantly.

I’m also yet to do any serious research on the holdings, so it would be interesting to hear from anyone who has done a bit of a deep dive.

Ultimately, I think the main reason I avoid these thematic funds is to mitigate against myself.

You could make a compelling case for investing in this space, but I could make an equally good argument for cloud computing, AI, clean energy and any number of other themes.

As you say, timing entry would be key and I think thematic funds generally encourage trading. I also feel like I don’t know enough, and nor will I, to allocate serious money to such focused strategies.

I like to keep things simple too, so I know what my allocations are to cyclicals etc, and a rag bag collection of themes would muddy the water.

I feel more comfortable going with cheaper, less constrained funds like SMT. In the end, I’d rather have say 1% of my portfolio invested in one good bet like SpaceX than hold a broad basket.

In a similar vein, I don’t see much point holding a semiconductor ETF, with 30-40 holdings, when you could just buy NVDA and ASML.

Slow trading, I managed to open up a position with a tenner to keep me interested :crazy_face:

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