Investment Trust selection


#1

Hello

I am new to the forum and in the process of transferring my pension to a SIPP.

Have been looking at A J Bell or Charles Stanley. The value is around £100k and I am thinking of drip feeding maybe £500 per month into twenty or so investment trusts over ten months…

Looking for maybe a 50/50 split between dividend yield and growth. Possibilily in a few years time I might need to take some cash but otherwise I am hoping for some dividend income.

Have looked at John Baron’s site and have come up with a slight variation on his suggestions…really would welcome any thoughts or comments.

This list I think needs whittling down a little - the % refer to dividend yields

UK Shares
Finsbury Growth & Income Trust (FGT)
1.94%
JPMorgan Mid Cap (JMF)
2.22%
Murray Income (MUT)
4.00%
Henderson Smaller Companies (HSL)
1.62%
Perpetual Income & Growth (PLI)
2.93%
Strategic Equity Capital (SEC)
0.79%
Hansa Trust (HAN)
1.96%
Merchant’s Trust
5.05%
City of London IT
3.80%
Temple Bar
3.38%
International Shares
European Assets Trust (EAT)
5.74%
Fidelity China Special Situations (FCSS)
0.87%
JPMorgan Japanese (JFJ)
1.03%
Henderson Far East Income (HFEL)
5.47%
Oryx International Growth Fund (OIG)
N/a%
Baillie Gifford Japan (BGFD)
N/a%
Pacific Assets Trust
1.24%
Themes
International Biotechnology (IBT)
N/a%
Herald (HRI)
N/a%
The Biotech Growth Trust (BIOG)
N/a%
Utilico Emerging Markets (UEM)
3.24%
City Natural Resources (CYN)
5.21%
Ecofin Water & Power Opportunities (ECWO)
4.46%
Commercial Property
TR Property (TRY)
2.42%
Standard Life Property Income (SLI)
5.30%


#2

Hi @smokeyone, my first thought is it’ll be expensive to drip feed in to 20 investment trusts per month. Alliance Trust charge £5 to do that and if you’re investing £500 per month that’s £25 each, £5 of which is charges.

The £100k is a lot easier to invest.

How long until you need to access the money Greg?


#3

I broke your list up a little bit so I could follow it better @smokeyone Maybe it’ll help others too:

This list I think needs whittling down a little – the % refer to dividend yields

UK Shares

Finsbury Growth & Income Trust (FGT) 1.94%

JPMorgan Mid Cap (JMF) 2.22%

Murray Income (MUT) 4.00%

Henderson Smaller Companies (HSL) 1.62%

Perpetual Income & Growth (PLI) 2.93%

Strategic Equity Capital (SEC) 0.79%

Hansa Trust (HAN) 1.96%

Merchant’s Trust 5.05%

City of London IT 3.80%

Temple Bar 3.38%

International Shares

European Assets Trust (EAT) 5.74%

Fidelity China Special Situations (FCSS) 0.87%

JPMorgan Japanese (JFJ) 1.03%

Henderson Far East Income (HFEL) 5.47%

Oryx International Growth Fund (OIG) N/a%

Baillie Gifford Japan (BGFD) N/a%

Pacific Assets Trust 1.24%

Themes International Biotechnology (IBT) N/a%

Herald (HRI) N/a%

The Biotech Growth Trust (BIOG) N/a%

Utilico Emerging Markets (UEM) 3.24%

City Natural Resources (CYN) 5.21%

Ecofin Water & Power Opportunities (ECWO) 4.46%

Commercial Property TR Property (TRY) 2.42%

Standard Life Property Income (SLI) 5.30%


#4

Hello @smokeyone and welcome to our little community. People are quite friendly here. Not full of angry little men like some other forums I’ve been on.

I am also wondering how long you intend to be invested for because it is relevant to any feedback I or anyone gives to you. And it will inform fund choices.

Also it would be helpful to know what age range you’re in because that’s relevant too.

Also, if you email the operators of this site I think they have a form-thingy that will ask you all the questions that will help people give you proper feedback. Not sure exactly how it works love but I’ve seen others do it so it can’t be that complicated. Here’s an email address if that interests you - enquiries@whichinvestmenttrust.com

 


#5

Hello

Thank you all for your replies. I’ll e-mail this site for the questions form.

It would be a long term investment but my work situation is fluid (good word I think) and I am 61. As I mentioned I might need some of the cash in a few years but that is not critical. The list is too long.


#6

@smokeyone

It looks like you have two issues to consider - first which platform to use and second which trusts to consider.

On the first question - you may need to do some homework on which platform will suit your needs best. In particular the cost of monthly dealing may be an issue. Sadly some platforms have a very restricted choice of trusts available for monthly dealing (Selftrade and Hargreaves Lansdown (HL) for example) and also some only offer cheap monthly dealing for new money coming in by direct debit (ATS & HL)

There are some platform comparison sites around - but you may need to dig deeper to get the true cost based on how you expect to trade.

See langcat as an example

http://langcatfinancial.co.uk/white-paper/direct-approach-platform-investing/

 


#7

@smokeyone

On the list of trusts - generally it looks like a good selection of well performing and highly rated trusts.

It looks like about 25 trusts which would imply £4k, or if you slim the list to 20 as you suggest then £5k. I think either number is ok, but your list includes some mainstream and some more specialist trusts so perhaps equal shares might not be ideal.

A few points to consider

  • Biotech is going great guns, but including both IBT & BIOG is probably too much, perhaps consider replacing one with Worldwide Pharmaceutical (WWH) or the more income focused Polar Capital Global Healthcare (PCGH)

  • I’m a fan of Private Equity, so would include at least one trust, if you are after income then Princess Private Equity (PEW) is a high yielder, or F&C Private Equity (FPEO) or JZ Capital (JZCP - on a large discount). If income isn’t as important then Pantheon International (PIN) is worth considering

  • For the Japanese exposure I would drop one of JFJ or BGFD and consider either a hedged ETF (IJPH) or the new Aberdeen Japan trust (AJIT) which is also partially hedged.

  • though I hold Hansa (HAN), I probably wouldn’t consider it a UK trust (main holding is in Brazil) and it is probably a bit obscure for the rest of your portfolio.

  • I think you have too many UK income trusts - so would drop Murray Income (MUT) and possibly Merchants (MRCH)

  • Your European exposure is a bit specialised (small-cap), I might consider Jupiter European (JEO) instead or as well,

  • I like Ecofin (ECWO) but it is probably a bit specialised for your portfolio.

  • I would probably go for a larger holding in Pacific Assets (PAC) and maybe include Aberdeen Asian Smaller Companies (AAS) in preference to Fidelity China (FCSS), but depends on your view on China.

Hope this helps,

 


#8

Hello

Thank you very much for your reply and for taking the trouble to go into a little detail. One aspect I had not considered was a limited list of trusts available from a platform - it might not match my list - I had already found out about “new money” and low monthly dealing costs - HL would charge their normal dealing rates and very roughly over say ten months their dealing costs would add up to close to £1800…I am still considering drip feeding the trusts but may have to revise my thoughts - every other month for instance.

Thanks for the link to the Langcat - a mind of information. Rather than equal amounts is there a way to decide how to split the investments…