Oh and BTL agent fees are usually from 10% of the rental income, for this they will collect the rent and perform a 6 monthly inspection. Tenant finders fees and contract renewal are usually 1 off fees, my agent charges half a month’s rent as a finder’s fee and a flat fee for and around £150 for contract renewal.
Hi Angus, thank you so much for your information. It’s a great help. Maybe BTL is not a suitable option for me at the moment as you mentioned that so many things needed to be consider and I won’t have the time to deal with it, but it’s really good to know . Thank you.
How have your thoughts progressed on this. Are you still going ahead. Would be interesting to track. In particular if you take advantage of any discount/premiums.
For example clean energy is the in thing right now, and the majority of the renewable infrastructure investment trusts trade at a premium. That might not always be the case, or the NAVs may be out of date.
Take the Thomas Lloyd Energy Impact. I didn’t have funds to take part in its IPO on a more expensive broker, yet it’s now trading at a 17% premium even though it didn’t fill its initial IPO.
It’s not even generating revenue yet IIRC.
hi Dougal, I was meant to look at this at the weekend but my children had other plans for me.
I’m interested to look at the morningstar x-ray feature topher mentioned - I’m hoping that will highlight crossover between different ITs, and I understand the NAV is important when looking at these things. I was also going to consider market capitalisation of ITs as well (I was quite used to skipping ETFs under a certain size in my passive pie.)
I’m wondering about diversification for my IT pie - something I coped with quite well with my passive/ETF pie; be it geographic, sector or market (dev/em) based however I’m not sure you can quite look at it like this with ITs as ITs are more discretionary in that they are actively managed by someone. Nevertheless, the aic seem to categorise IT so I presume to factor that in too to my decision making. Someone (you?) mentioned limiting exposure to private equity to 5% of the portfolio - I’m wondering how to decide on allocating the other 95% …
I’m not interested in trending themes, it’s all about success for me - I’ll buy coal mines if I think they are going to do well For sure some of the ITs I have browsed have high premiums; that some aren’t generating revenue as well is interesting however I’m not going to jumping on fear of missing out - good luck to all those that are in already!
I’ll come back here once I’ve had a look into things, I’d appreciate any feedback, thanks for following up
Oh I see that MorningStar’s x-ray tool is just for mutual funds.
theaic.co.uk seems to present all the data I would use to help decide what to invest in.
That’s odd, perhaps they’ve made changes, it definitely used to work for trusts and ETFs as well.
Here’s my first stab at an IT PIE, I’ve put some workings here
Not sure how this will copy/paste, let’s see:
|AIC Interesting Sectors||Investment Trusts|
|Global Smaller Companies||5%||5%||SSON||Smithson IT|
|Global Emerging Markets||2%||2%||JMG||JPMorgan Emerging Markets|
|North America||10%||14%||10%||JAM||JPMorgan American|
|North America Smaller Companies||4%||2%||JUSC||JPMorgan US Smaller Companies|
|2%||BASC||Brown Advisory US Smaller Companies|
|Europe||Europe||9%||12%||9%||JETG||JPMorgan European Growth|
|European Smaller Companies||3%||3%||ESCT||European Smaller Companies|
|UK||UK all companies||8%||11%||8%||MRC||Mercantile|
|UK Smaller Companies||3%||3%||ASL||Aberforth Smaller Companies|
|Japan||Japan||5%||7%||5%||BGFD||Baillie Gifford Japan|
|Japanese Smaller Companies||2%||2%||BGS||Baillie Gifford Shin Nippon|
|Asia||Asia Pacific||2%||3%||2%||SDP||Schroder AsiaPacific|
|Asia Pacific Smaller Companies||1%||1%||SST||Scottish Oriental Smaller Companies|
|Gamble||Private Equity||3%||6%||3%||HVPE||HarbourVest Global Private Equity|
|VCT Generalist||3%||3%||OAP3||Octopus Apollo VCT|