Return of the Corbyn threat ?

[Dod101]

Re charges on EGL, the KID shows:
Transaction costs: 0.34%
Other ongoing costs: 1.79%
Risk factor: 5

Hi richfool, Quite so, though I'm told that the charges figures presented on KIDs are best treated with caution and that one is better advised to look elsewhere to get the most reliable figure eg the AIC or the OCF figure on the latest factsheet if there is one. I see that the AIC & MorningStar both reckon that the charges for EGL are 2.01% so slightly less than the KID.

The Annual Report is my point of reference and according to it, the Ongoing Charges Ratio was 1.99% for 2018. The management fee was 1.25% of that and it has been reduced for the new year to 1% which ought to bring down the OCR by 0 .25% to around 1.74% which is probably not bad. Quite a small company at £150 million of assets and I am interested to see that not surprisingly its UK investments include National Grid, SSE, Drax and Pennon, and internationally it has a stake in Beijing International Airport.

I think I could well leave this IT alone.

Dod

[richfool]

Re charges on EGL, the KID shows:
Transaction costs: 0.34%
Other ongoing costs: 1.79%
Risk factor: 5

Hi richfool, Quite so, though I'm told that the charges figures presented on KIDs are best treated with caution and that one is better advised to look elsewhere to get the most reliable figure eg the AIC or the OCF figure on the latest factsheet if there is one. I see that the AIC & MorningStar both reckon that the charges for EGL are 2.01% so slightly less than the KID.

The Annual Report is my point of reference and according to it, the Ongoing Charges Ratio was 1.99% for 2018. The management fee was 1.25% of that and it has been reduced for the new year to 1% which ought to bring down the OCR by 0 .25% to around 1.74% which is probably not bad. Quite a small company at £150 million of assets and I am interested to see that not surprisingly its UK investments include National Grid, SSE, Drax and Pennon, and internationally it has a stake in Beijing International Airport.

I think I could well leave this IT alone.

Dod

Dod, I'm not sure which of the piece of information tipped your scales against EGL. Maybe the charges in conjunction with the UK utilities in its holdings.

I noted that NG is the largest of EGL's UK utility holdings, representing 3.5% of its portfolio, Drax: 2.9%, SSE: 2.8% and Pennon: 2.3%, so the UK utilities represent c 11.5% in total. I'm happy holding it as (it's one of 30 IT's in my broadly based portfolio and) it gives me modest exposure to a diversified portfolio of global utilities with a degree of defensiveness. (Perhaps I'm beginning to wish that I didn't have a separate holding of NG).

The holding in Bejing airport represents only 1.8% of the portfolio, so that doesn't really bother me, (even though I like to keep my overall exposure to China at a low level).

I note that Capital Gearing trust (CGT) holds EGL, (along with a slug of renewable energy trusts), amongst numerous other IT's, I believe for increased diversification and defensiveness.

Renewable energy perhaps represents a sector which is more in favour currently.

[Dod101]

Hi richfool

I have nothing against it but nothing really jumps out at me to encourage me either. I do not mind China shares particularly, but the slug of UK utilities puts me off and this is a very small IT anyway. That coupled with the high charges does not fill me full of enthusiasm. Nothing in particular either way.

I really do not like investing on that basis.

Dod