Managing a Trust's share portfolio.

The Trust holds the following shares in its portfolio.
CNU<EBO<FPH<FRE<HLG<MCY<MEL<OCA<RBD<PGW<RYM<SEK<SK L<SPK<SUM<THL<TRA<and on Unlisted PAZ and SFF.
This year we sold a few PGW on 1st Feb,and added SEK on 24/Jan to receive their dividend.
Last year we reduced our SKL and TRA holdings.
In June/July this year we will buy into a NZ bank.At this stage most probably HGH or WBC.[Trust already holds NAB in Aussie].
Activity.We seldom buy/sell.All shares I bought to hold forever.Broker's quarterly recommendations are read,but seldom acted on.
Usually they say we are over weighted in this that or the other share.Offcourse when you get winners in your portfolio you are going to be over weighted.[My own portfolio is GROSSLY over weighted in in a couple of companies].
My point is to have a very successful portfolio you do not need to make many adjustments if you have chosen carefully..

Interesting post Percy. I have insight into a trust probably set up along the same or similar criteria. Overweighted over time in some areas but no intention to sell those. Holds FRE, MEL, MCY, FPH, GEN, NPH, SUM, ZEL as main constituents. Recently I’ve been asked to become trustee. One of the issues I have noted is the (lack of) inertia to make small changes as
Needed. There are smaller holdings which probably should have been reviewed as they trended downwards. Trust takes advice from sharebroker. Agree that if you start out with solid picks, only requires intermittent weeding.

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Originally Posted by audiav

Interesting post Percy. I have insight into a trust probably set up along the same or similar criteria. Overweighted over time in some areas but no intention to sell those. Holds FRE, MEL, MCY, FPH, GEN, NPH, SUM, ZEL as main constituents. Recently I’ve been asked to become trustee. One of the issues I have noted is the (lack of) inertia to make small changes as
Needed. There are smaller holdings which probably should have been reviewed as they trended downwards. Trust takes advice from sharebroker. Agree that if you start out with solid picks, only requires intermittent weeding.

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Hope that is GNE and not GEN.
If it is GEN I admit buying a few for the wife recently.Expecting the next announcement will be another positive one.
If it is GNE wife and I are happy long term holders.

��*♂️ gne.

That’s the male facepalm emoji!!!

For a trust, would it be a lot easier just to hold the index ETF NZX50, no need to rebalance and no need to justify what share to purchase.

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Originally Posted by voltage

For a trust, would it be a lot easier just to hold the index ETF NZX50, no need to rebalance and no need to justify what share to purchase.

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Most probably would be.Would certainly save a lot of the fees charged by the share broking firm.
I did not want to become a trustee,however my late friend's wife asked me to ,as the trust's shares were all the ones I had suggested.
A question.Does an index ETF NZX50 pay dividends.?

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Originally Posted by percy

Most probably would be.Would certainly save a lot of the fees charged by the share broking firm.
I did not want to become a trustee,however my late friend's wife asked me to ,as the trust's shares were all the ones I had suggested.
A question.Does an index ETF NZX50 pay dividends.?

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NZX50 ETF I believe does pay dividends in late May / Late Nov/early Dec

Gross div yield approx 1.5% from where I was looking

Similarly - I would be wary of being a Trustee, as recent Trust Legislature changes have created a bit
of a potential minefield for the unwary :)

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Originally Posted by nztx

NZX50 ETF I believe does pay dividends in late May / Late Nov/early Dec

Gross div yield approx 1.5% from where I was looking

Similarly - I would be wary of being a Trustee, as recent Trust Legislature changes have created a bit
of a potential minefield for the unwary :)

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Thanks for your reply.
Three trustees.My late friend's wife,who is very savvy,myself,and the senior partner of one ChCh's leading legal firms.
I sort his advice before I accepted being a trustee.
The trust's performance has been very good,as has the growth in dividends.
Hard for me to compare performance against NZX as the trust has made a number of substantial distributions,yet remains in good shape.

Interesting comments about becoming trustee, thanks. I’m glad I have been given a heads up to think about it over the next year or so with no obligation. It’s interesting how history has determined the trust buying shares has developed from business relationships turned friendships into retirement and family connections to share brokers, probably a case of reviewing whether this is the best strategy (individual vs index funds) for the trust into the future.