Has Brexit stopped you investing in UK Trusts?


#1

Has Brexit stopped you investing in UK Trusts

  • Yes
  • No

0 voters


#2

it did initially but I think the UK market is cheap enough now so I’ve started buying again.


#3

Given that many uk companies have substantial overseas revenues, why should I?


#4

I fully intend to use my full ISA allowance next year but maybe not in April. Interesting article on the AJ Bell website regarding UK shares https://www.youinvest.co.uk/articles/investmentarticles/160928/brexit-divides-uk-stock-market. Any thoughts anyone?


#5

The’re as cheap as chips! UK focused trusts like Perpetual Income & Growth, Edinburgh and Keystone have been bashed to hell. Rights & Issues not so much but then he holds oligopolies. But you must balance this binary outcome with global stocks. It will all be down to sterling in the end.


#6

Yeah, good point @james_pigott I’m thinking of topping some of my UK holdings up because if we get no deal, a lot of that will be price din already (not all of it), and it looks like a reasonably good opportunity to get in cheap, maybe not at the bottom but that beyond my skill set, but very good value nonetheless.


#7

I’ve been increasing my UK exposure via the Invesco Income Growth trust (IVI.L). Despite mediocre performance figures recently - partly down to its cautious and defensive style - the portfolio looks sound and it’s trading at a discount of around 14%. The trust doesn’t use a discount control mechanism, unlike many similar trusts, so I feel that in time the discount will narrow - and with a yield of 4.4% I get paid to be patient.
Any thoughts?


#8

Thanks for highlighting the discount which does look appealing. Fee is a bit steep for a UK trust but I like it that (while they charge half of their management fee to capital) the dividends are still covered by net income. I bought Law Debenture for the same reasons although they do have a wider remit, but I can never make up my mind whether I want the exposure to their fiduciary services business which I believe accounts for around 13% of their NAV.


#9

I voted No, but it has now! I’m holding fire on this binary outcome…