Report card: Off to a good start with a repositioned portfolio for Foreign & Colonial’s Niven


#1

F&C has announced its first annual results under new manager Paul Niven, Head of Multi-Asset Investment at F&C Asset Management who took over
[See the full post at: Report card: Off to a good start with a repositioned portfolio for Foreign & Colonial’s Niven]


#2

If private equity is so profitable for them and providing they find enticing opportunities to invest why not allocate more to the sector not less as this article suggests they are considering.

After all, isn’t this one of the advantages of investment trusts that they can invest in illiquid sectors like private equity.

 


#3

If they are protecting a -10% discount they still need liquidity @jkstowe. If they have too large a stake in private equity funds and they need to purchase a lot of shares to protect the discount then they’d be forced to disproportionally sell down their more liquid holdings.

This is the disadvantage of discount policies. Zero discount policies make an investment trust too much like a Unit Trust in my opinion.


#4

It’s really quite surprising that they have repurchased £1 billion of their own shares since 2004. That would have been under Jeremy Tigue who I know a lot of people liked and followed.

I am tempted to invest in either Foreign & Colonial or Witan. I’m looking for a diverse global trust with a range of assets. Right now I think Witan has the upper hand but then again the discount is wider here. Witan is on a discount of around 3%.

Although Niven doesn’t have a long track record at the trust he has a longer track record managing multi-assets so I don’t consider him to be as risky as some might.

I need to ponder on this a little.


#5

If you compare this to a unit trust multi asset fund then it really does come in to its own in terms of charges because it’s so much cheaper and on this level of discount I think it’s attractive. There’s not too much to lose.

This is certainly a better managed trust than British Assets that F&C lost to BlackRock a couple of weeks ago.

I like the changes that Paul Niven has made and I hope he decides to retain the investment in private equity for the long run because that’s a good call in my opinion, private equity as long as your in the right funds always does well over the long term.


#6

But what is the benefit of being multi asset Ronmac?


#7

@letsdoit you need to add the @ symbol of you want @Ronmac to know you’ve asked him a question.

But my response is the theory is that multi assets provide better protection because they diversify risk because different assets tend to perform differently for much of the time. It didnt happen so much in the financial crisis though.


#8

Thanks @lukas I had forgot about the @ symbol. I know it's like twitter but I only use twitter to monitor famous investors/actors/singers accounts.

Thanks for the multi asset description too.