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ITs for cash from bought-out shares

Closed-end funds and OEICs
spiderbill
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Re: ITs for cash from bought-out shares

#244253

Postby spiderbill » August 14th, 2019, 2:18 pm

Dod101 wrote:monabri is right and that is probably the reason that European oriented trusts are at a decent discount at the moment. I am not very enthusiastic about specialist trusts anyway, whether by geography or industry for just this reason. I prefer that managers have got a flexible mandate subject maybe to an income trust or growth trust or some other very broad aspiration. But leave them to get on with it.


Ok, that's a different perspective I maybe should have considered a bit more. Perhaps been influenced too much by having a counterpoint to a predominently UK based HYP(-ish). In effect an IT version of VWRL ETF but hopefully without the duds.

Dod101 wrote:So I hold Murray International, Caledonia, RIT Capital Partners, Finsbury Growth and Income, Tenple Bar, HFEL (a sort of geographical specialist, but a fairly broad one) and the two UK income trusts, Edinburgh IT and Murray Income. I would have ditched Edinburgh but I have held it for a long time and despite its very poor performance recently, I will have a large CGT liability if I sell and do not want that this year.

Dod

Murray International is a sore point for me - still down over 12% on a batch I bought in Nov 17. Looking at the others I note that Caledonia, RIT Capital Partners, and Finsbury are more growth oriented than income, so it sounds as if you and richfool are maybe nudging me towards a more mixed total return non-geographical approach? More pondering required.

cheers
Spiderbill

Dod101
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Re: ITs for cash from bought-out shares

#244313

Postby Dod101 » August 14th, 2019, 5:14 pm

spiderbill wrote:[Murray International is a sore point for me - still down over 12% on a batch I bought in Nov 17. Looking at the others I note that Caledonia, RIT Capital Partners, and Finsbury are more growth oriented than income, so it sounds as if you and richfool are maybe nudging me towards a more mixed total return non-geographical approach? More pondering required.l


I honestly do not want to nudge you in any direction but what I have quoted works for me. There are not that many good income trusts that I have found so far so whilst I have HFEL which has done fine income and modest growth wise, My other income trusts are both UK oriented and have been not very good on the capital front. I also hold Scottish Mortgage but that is another growth oriented trust.

Dod

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Re: ITs for cash from bought-out shares

#244317

Postby everhopeful » August 14th, 2019, 5:26 pm

I never quite understand the enthusiasm for MCT. It has given a capital return of about half its benchmark over the last five years. Blackrock North American Income has done much better and has beaten its benchmark.

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Re: ITs for cash from bought-out shares

#244341

Postby richfool » August 14th, 2019, 7:28 pm

everhopeful wrote:I never quite understand the enthusiasm for MCT. It has given a capital return of about half its benchmark over the last five years. Blackrock North American Income has done much better and has beaten its benchmark.

For me it has provided a steady above average income (arising in Canadian & US dollars), and exposure to the Canadian dollar throughout a period of a continually weakening £ sterling, along with some useful diversification.

Current yield 5.25%. My yield on cost 6.00%. My capital appreciation has fallen back a bit, to 15%

stevensfo
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Re: ITs for cash from bought-out shares

#244349

Postby stevensfo » August 14th, 2019, 8:22 pm

richfool wrote:
everhopeful wrote:I never quite understand the enthusiasm for MCT. It has given a capital return of about half its benchmark over the last five years. Blackrock North American Income has done much better and has beaten its benchmark.

For me it has provided a steady above average income (arising in Canadian & US dollars), and exposure to the Canadian dollar throughout a period of a continually weakening £ sterling, along with some useful diversification.

Current yield 5.25%. My yield on cost 6.00%. My capital appreciation has fallen back a bit, to 15%


I realised years ago that I should start reducing and consolidating holdings and did so. One that I didn't touch was MCT. It throws off the divis like they're going out of fashion, and never stops. Yes, capital growth isn't great, but selling shares to raise funds costs money. The divis arrive without me doing a thing.


Steve


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