The Lemon Fool

ReallyVeryFoolish wrote:Interesting thread. The IT bargains of 6 to 9 months ago have pretty much evaporated. I agree about RGL but I wouldn't buy any more. I have been a fan of Law Debenture Trust the last 9 months, but it has perked up a lot recently. Nice capital appreciation and a generous dividend locked into my portfolio there. I have made a couple purchases of BERI this last 6 months and I think it could do well on the back of global economic expansion. Not one for those who moan about annual charges, mind. But we shall see if the management earn it or not over the next few months/years. I am hopeful and I may buy a bit more.

RVF

doug2500 wrote:I swapped EAT for MTE and it's worked well for me (very well).

Past performance is no guarantee.........

I have a soft spot for Mid Wynd which offers something different I think.

ReallyVeryFoolish wrote:

Spet0789 wrote:

ReallyVeryFoolish wrote:Interesting thread. The IT bargains of 6 to 9 months ago have pretty much evaporated. I agree about RGL but I wouldn't buy any more. I have been a fan of Law Debenture Trust the last 9 months, but it has perked up a lot recently. Nice capital appreciation and a generous dividend locked into my portfolio there. I have made a couple purchases of BERI this last 6 months and I think it could do well on the back of global economic expansion. Not one for those who moan about annual charges, mind. But we shall see if the management earn it or not over the next few months/years. I am hopeful and I may buy a bit more.

RVF

I and my wife own a good amount of RGL. I have recently started to take a close look at BioPharma Credit (BPCR).

As the name suggests, it’s a specialist credit fund. As it invests in loans, its yield (7% in USD) is treated as interest income not as dividends.

Any others hold?

A Questor tip, I think? I will not hold anything in USD. Especially USD dividends where the FX charges can be crippling, typically on small amounts of cash.

RVF

OllyDrodd wrote:You've no real bond exposure either. Henderson Diversified Income (HDIV) is on a nice discount at the moment and pays around 5%. I also like TwentyFour Select Monthly Income (SMIF) which may have extra appeal if you're relying on dividend income.

richfool wrote:

OllyDrodd wrote:You've no real bond exposure either. Henderson Diversified Income (HDIV) is on a nice discount at the moment and pays around 5%. I also like TwentyFour Select Monthly Income (SMIF) which may have extra appeal if you're relying on dividend income.

I've been having a look at both of the above as possible diversifiers, but have this concern at the back of my mind about bonds selling off or falling if/when interest rates rise.

Noted that, of the two, HDIV has a lower yield, looks to invest in lower risk bonds, holds floating rate notes (good) and has negative capital appreciation. SMIF attracts me more because of it's higher yield (paid monthly) and some modest capital capital appreciation.

SMIF current yield: 6.25% (NAV Premium 3.67%)

HDIV current yield: 5.10% (NAV Disc -7.63%)

OllyDrod wrote:

richfool wrote:

OllyDrodd wrote:You've no real bond exposure either. Henderson Diversified Income (HDIV) is on a nice discount at the moment and pays around 5%. I also like TwentyFour Select Monthly Income (SMIF) which may have extra appeal if you're relying on dividend income.

I've been having a look at both of the above as possible diversifiers, but have this concern at the back of my mind about bonds selling off or falling if/when interest rates rise.

Noted that, of the two, HDIV has a lower yield, looks to invest in lower risk bonds, holds floating rate notes (good) and has negative capital appreciation. SMIF attracts me more because of it's higher yield (paid monthly) and some modest capital capital appreciation.

SMIF current yield: 6.25% (NAV Premium 3.67%)

HDIV current yield: 5.10% (NAV Disc -7.63%)

The risk of an inflation-driven sell-off is also playing on my mind. I've got a stop-loss on SMIF for that reason. I don't currently hold HDIV but if the discount continues to widen out it's going to look more and more attractive (even with the risk of a sell-off). There was quite a detailed research note from QuotedData on HDIV published this week - not sure if you've seen it?
https://quoteddata.com/research/henders ... g-guns-qd/

- OllyDrod

richfool wrote:

OllyDrodd wrote:You've no real bond exposure either. Henderson Diversified Income (HDIV) is on a nice discount at the moment and pays around 5%. I also like TwentyFour Select Monthly Income (SMIF) which may have extra appeal if you're relying on dividend income.

I've been having a look at both of the above as possible diversifiers, but have this concern at the back of my mind about bonds selling off or falling if/when interest rates rise.

Noted that, of the two, HDIV has a lower yield, looks to invest in lower risk bonds, holds floating rate notes (good) and has negative capital appreciation. SMIF attracts me more because of it's higher yield (paid monthly) and some modest capital capital appreciation.

SMIF current yield: 6.25% (NAV Premium 3.67%)

HDIV current yield: 5.10% (NAV Disc -7.63%)

Newroad wrote:Hi All.

I hold HDIV and BIPS.

I used to hold IPE and CMHY before they merged to create BIPS and for that reason might like to rediversify. NCYF and SMIF are the obvious candidates, but their recent premiums and lack of Morningstar rating discourage me.

We're I buying for the first time again, I would prefer HDIV to NCYF or SMIF for similar reasons.

SMIF has a lower beta than either HDIV or NCYF, which may make it more attractive for some.

Regards, Newroad

Dod101 wrote:Talking in code again. Enjoy!

Dod

richfool wrote:

Newroad wrote:Hi All.

I hold HDIV and BIPS.

I used to hold IPE and CMHY before they merged to create BIPS and for that reason might like to rediversify. NCYF and SMIF are the obvious candidates, but their recent premiums and lack of Morningstar rating discourage me.

We're I buying for the first time again, I would prefer HDIV to NCYF or SMIF for similar reasons.

SMIF has a lower beta than either HDIV or NCYF, which may make it more attractive for some.

Regards, Newroad

Are you holders of these bond/fixed interest investments not concerned that their SP's will fall, if interest rates rise, or indeed when talk of tapering arises, (such as is anticipated at Jackson Hole)?

I keep looking at SMIT, but don't want to buy in, if the SP is going to fall next week or later this year.

Newroad wrote:Hi RichFool.

No-one knows the future - but my guess is that interest rates won't rise precipitously. Further, if they do, I'd perhaps be even more worried about equities than high yield bonds.

In context, I prefer the higher rated "Debt" Investment Trusts trading at a discount to NAV versus the lower/unrated ones trading at a premium to NAV. But that's just me.

Regards, Newroad

PS On the use of EPIC codes I have sympathy with both perspectives. In any given area/industry/profession or whatever, shorthand or similar exists. I generally prefer its use where possible, for reasons of both succinctness and clarity. However, I do understand it is a barrier to easy of entry for some. The way I try and square that circle is to be helpful if needed - though to be honest, most on this forum, if they are genuinely interested in the topic matter, are more than capable of quickly figuring out most stuff themselves if needed. Even I need to do that on occasion, e.g. I had no idea what SMIF referred to when I first came across it.

So is inflation coming back or not? The answer is simple: we just don’t know.

Our Wealth Preserver Portfolio was not brought into being because we were convinced that high inflation was inevitable; it was to offer an answer to those readers who could not afford to ignore the risk: those on fixed incomes, perhaps retired, for whom rising prices would destroy all their hopes of financial security.

While we saw inflation as sufficiently likely to warrant such a portfolio, we also acknowledged that deflation could not be ruled out, as the fund manager quoted above hinted at. Our portfolio is designed to cope with both inflation and deflation, even if we accept that the former is the bigger preoccupation for many readers.

Accordingly, this week we add some assets that should perform extremely well in real terms if the cost of living falls but still contribute returns, largely in the form of income, in inflationary times.

Bonds tend to be bad investments in times of inflation, unless their interest rate is index-linked. We have already bought some “linkers” issued by the Government, which although they offer guaranteed real-terms returns pay little or no interest on top. Some other bonds, while riskier, offer much higher rates. We will buy some, via four specialist investment trusts, now. We will deploy 2.5pc of the portfolio into each, for a total exposure of 10pc.

Questor says: buy

Tickers: RECI, BPCR, BIPS, TFIF

Dod101 wrote:

scotia wrote:

Dod101 wrote:Talking in code again. Enjoy!

Dod

Yes - some years ago there was a suggestion that if you wanted to use an EPIC code, you should always include the name with the EPIC on the first time you use it. OK - I'm not an income investor, but the only EPIC I had heard of was HDIV. I appreciate that Income Investors will probably know what the others are - but the names will make the responses more interesting to other investors

HDIV Henderson Diversified Income
BIPS Invesco Bond Income Plus
IPE Defunct
CMHY Defunct
NCYF CQS New City High Yield Fund
SMIF TwentyFour Select Monthly Income Fund

It was probably I who suggested it because I find it rude for posters to write in code and it seems that they are persisting. Why should us lesser beings be required to go and look up the EPIC code they are using? Are they superior beings, more competent or simply rude?

Dod

Dod101 wrote:Googling will get me nowhere and so I need to go to a platform and insert it somewhere, unless that is you can let me know of a more direct way which there may be for all I knwo.

Dod

Dod101 wrote:
but if I am confronted with NCYF how do I find out what it means?

Googling will get me nowhere