Uk investment trusts

[Joshuatree]

Whats the yearly average return OR? cheers JT

[OldRider]

Joshuatree:
I am not sure what you want? the figures (IRR) I quoted are the average yearly return for each trust.
As a group I don't know, initially I purchased about the same value of each trust but the two highest gowth trusts are of course worth
much more now than the lower two, I figure this will distort the groups return?

[Joshuatree]

Thanks for clarifying. I used to have some of those but i bailed along time ago ,when an investor with private asset management(Brent sheather). You look like a great example of "Its the sitting that makes the returns" ;for 2 out of four anyways. Cheers JT

[Kwkiwi]

Many thanks for all the advice, lots to ponder. I think I won't put so much into the uk investment trusts. How do you invest in ishares? Some of the uk trusts still appeal but I'll lower the amount. Do you simply buy ishares on the asb securities website like normal shares. Also am I then exposed to the aud/nzd exchange rate movements? Thanks also old rider for sharing your picks with the uk investment trusts. I guess it depends a bit on when you bought n as to the returns you are achieving. I'm thinking of averaging in over the next 18 months.

[Valuegrowth]

I would like to add few more things. At different times different fund mangers will outperform others in the market depend on how they allocate their fund across various asset classes. Now funds like Templeton, Milford and Aberdeen etc are more excited about frontier markets as they see more prospects there now. I believe index funds are better than ETFs. Identifying correct fund is the key.

http://citywire.co.uk/best-investment-funds

Citywire's ideas for top investment funds and fund managers

Our quick guide: every fund featured in Citywire Selection or run by a Citywire rated manager

[voltage]

A few points. You need to decide if you want passive or active investments. ETFs are passive and investment trusts are active. I use both. Investment trusts are excellent for active investment as they are transparent and have lower fees than unit trusts. I stick with mainly global investment trusts and use ones with low fees. Scottish Mortgage has a max fee of 0.5% which has returned 168% for 5 years compared with the global index of 67% according to trustnet.com. There is no guarantee this will indicate future performance. I have sold a number that have under performed. Some are listed on the NZX.
Keep things simple. Perhaps use a couple of etfs for the core of your portfolio and a few investment trusts for active management. I do like an Etf that reflects the US market which represents 50% of the global share market. Few funds outperform the sp500 long term.
I purchase etfs on the asx. Using an asx online broker, fees are only 0.1% for purchase.
I do believe the NZX will have a global etf by the end of the year.

[Harvey Specter]

I do believe the NZX will have a global etf by the end of the year.

Rumour or speculation? By NZX/Smartshares? Seems obvious but they added 2 new Australian funds instead.

Lets hope with the purchase of superlife, they can get the smartshares upto scale and the fees % down.

[voltage]

i know, silly, who wants those dividend funds when you pay nz tax on the net dividends and unable to access franking credits.

[Kwkiwi]

Hi again, thanks for all the useful feedback on investment trusts. I was just wondering is it possible to open a UK online account. there is a only a few UK investment trusts on offer with ASB securities.

[BeeBop]

Interesting reading this thread with the benefit of hindsight and my now much more informed status. Someone directed KwKiwi innocently with misleading information, someone was holding WWH and showed their then returns which was pre-boom...I hope they held! And for what is worth, if you don’t hold WWH now, take a look at BBH as the new alternative which is still barely above NAV.

For my portfolio listed UK Invesment Trusts have been a major positive way forwards. Buying in the UK, I have had great returns, through very very careful selection, great global exposure and am so thankful that I generally do my own research and do not take someone else’s advice. I will however, take anyone’s pointers as that is how I initially got into them in 2010 via the NZX (HFL, TCL and BIT at that time).