I am trying to move my pension portfolio from OEICS to investment trusts in order to reduce the management fees I pay. I am happy to have OEICS if the performance advantage more than covers the extra platform fees but but if there is little performance advantage then I would prefer an IT. About 17% of this portfolio is invested in Old Mutual UK Mid Cap which has done extremely well with percentage increases of 27.2, 47.0 and 148.0 over 1,3 and 5 years respectively. I am looking for an IT in the same sector with similar or better and can’t find anything which comes even close. What would others suggest ?
The trust that springs to mind for me @Shetland is Standard Life Equity Income. It was caught out by the Brexit vote that punished mid and small caps but it means you can get it on a small discount. I really rate the manger Thomas Moore, it’s on the buy list for this site. The performance has been very good since he took it over barring 2016, and I think he’s a safe pair of hands.
Is it actually a mid cap investment trust you are looking for or something that performs as well as the Old Mutual fund you like @Shetland ?
I am looking for a mid cap IT with performance comparable with Old Mutual.
Then why not just hold on to the Old Mutual fund if it works for you @shetland .
I like Standard life Equity Income too, just like @andytheinvestor but another I like is Henderson Smaller Companies trust which despite the name is really a mid cap fund. Performance is stellar. Have a look at it.
Because my SIPP incurs platform fees of 0.45% on funds but much lower charges for IT’s and shares. My holding in OM is currently costing over £400 per year.
As there doesn’t seem to be a good IT alternative I think I will sell my holding in my SIPP and buy it in my main portfolio where there are no platform fees and I have some spare cash.
I think if you want a mid-cap IT @shetland , the best choice is JP Morgan Mid Cap (JMF), it had a poor 2016 (just after I bought it!), but over 5 years it has outrperformed the FTSE250 (and Schroder Mid Cap-SCP). Though performance is worse than your Old Mutual fund (so perhaps accepting the higher fees might be a good call).
Henderson Smaller is a good performer, but its benchmark is the Numis Smaller Companies (investment policy suggests it buys stocks in the smaller index, but can hold them if they move into FTSE250). If you are happy with smaller companies then Rights & Issues (RIII) is an even better performer.
Fidelity Special Values (FSV) is in the All companies space and is also a good performer (and I would choose it over Standard Life Equity Income - SLET)
I can’t think of a direct alternative which leads me to conclude that you’re better off moving to a broker which charges for the purchase rather than a perpetual and as you’ve realized expensive %. iWeb is £5 per transaction.