New category created for an interesting group of investment trusts


Originally published at:
The AIC has created a new sector to reflect a group of trusts that are investing differently from peers, and which fixes an anomaly where some trusts were placed in sectors where they just looked odd. The investment trusts reclassified to the ‘Flexible Investment sector’ BACIT BlackRock Income Strategies Trust Capital Gearing Trust Henderson Alternative…


Forgive me for not doing a cartwheel around the office! However, it was becoming evident that some trusts were just not the best fit for the category they were in. This has certainly helped.


Yeah it was getting silly, good move. It was a bit ridiculous when you compared the Henderson Diversified Strategies or Miton Worldwide Growth to fellow Global funds - they were just nothing like each other and it served to either flatter or detract from how they’d.

About bleedin time I say.


This change is going to cause riots; or at the very least, it will cause some people to sulk - just how is anyone going to be able to justify their criticism of PNL’s past performance now that it no longer in the same sector as SMT…? :no_mouth:

What next? different sectors for different hedge fund strategies? Similar for private equity? Where’s my beer gone…! :beer: :stuck_out_tongue:


Are you poking fun at this change @arkwelder ?

I rather think it is welcome. When one looks at PNL and SMT one surely would not compare the two as equals. SMT is like an incredibly adventurous chewing at the bit young puppy, whilst PNL is alike an old dog lying on the sofa afraid of the world outside. They are not in the same category at all.

Now you make a more valid point about where should it all end but my answer is you needs there to be others to compare yourself against for there to be a category, and, of course, you need to be pretty bloody different from what is the fellow constituents of your category.


Fun? Me? Given the time of the year, all that I can say is “I :heart: Scrooge:imp:

One of the problems with puppies is that after an energetic burst they can crash out for hours and hours. Whereas a nice long and steady stroll - which might involve stopping off occasionally at an appropriate watering hole - can reap rewards in itself…!

Oh, and just to repeat what I’ve said elsewhere - I hold both, but for two separate objectives and timescales, and I think that it is this aspect that some people tend to miss


Do you mean you hold both Scottish Mortgage and Personal Assets @arkwelder ?

I have Scottish Mortgage and I think it a bit odd that it’s in the same category as some of the ejected, discarded and spat out trusts so I like it.


Yes @rabsteel, I do hold both. I hold Personal Assets in my SIPP, where have just over a year to go before I can start to use it to generate a pension income, and I also want to maximise the 25% lump sum that I can take. PNL is far more appropriate to this task than the likes of SMT because of how much the latter can fall during a market downturn. I don’t have a specific timescale for SMT except in the sense that it is to be measured in decades, and I can be flexible over when I might want to cash in any gains, either to spend or to buy a reliable income-generating asset. As such, I can ignore short-term volatility and any falls that might happen along the way. Two different funds for two different objectives.


@arkwelder, I’d be interested to know at what point you think the 25% should go defensive in lieu of a payout? Too soon and you miss gaining some fat, which indeed could be trimmed before the event, like the last few weeks :cry: . Too late and it won’t make much odds.


@james_pigott, I suppose that one answer is that for anyone who will be going into drawdown, going defensive will not be strictly necessary anymore: instead of taking the 25% upfront, they could choose to spread it out and take it at the same frequency as their regular drawdown payments. So I suppose that the answer is how soon the individual starts to become more concerned about potential market falls rather than being concerned about missing out on rises.

I won’t go into detail here because I am aware of the potential for the thread to deviate from the original article, but I am considering doing something following a comment made elsewhere by @rabsteel. All that I will say here is that I first moved into PNL in 2010, and that the shareprice now is higher than it was then - unlike on of the things which it replaced, which was the capital shares of JPMorgan Income & Growth…!


You are right @arkwelder in that the pension changes have certainly made people think again about many things and how to invest through the whole period is one of them. It is becoming more specific to individuals and less easy to produce generalisations. However, now that SIPPs can be inherited without a penalty there may be less reason to take the foot off the gas, since the timeframe could now be indefinite!