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Four ITs that have done better than most in last 2 years

Closed-end funds and OEICs
spiderbill
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Four ITs that have done better than most in last 2 years

#173178

Postby spiderbill » October 12th, 2018, 1:01 am

Almost 2 years ago, when I was starting to consider adding some ITs to my investments, I set up a watchlist using a spare copy of the HYPTUS spreadsheet and incorporating many of the ITs I'd read about here and on the old TMF board - things like Luni's B7 and B8, and various collections that other posters mentioned.
I set them all to have enough shares to be equal value (£1800 - just happened to be the first figure that it worked at) and have follwed them ever since. I colour coded them to show capital values of under the start figure, over the start figure, and over £2000 (an 11% gain).

My choices when I bought some about a year ago were Henderson Far East Income, Murray International Trust, and later Foreign & Colonial Investment Trust. (Murray have been a bit of a horror, now 18% down, while Henderson were ok until recently but are now 10% down, and F&C were up about 10% at one point but are back down to only 1% up.)

However to get to my point, after the recent market falls only 4 of the 45 ITs are now still above the £2000 value level, (amongst a sea of red), and I'm wondering about them as possible buy candidates. The 4 are:

3i Infrastructure - £2,351 - 3.4% yield
Finsbury Growth and Income Trust - £2,050 - 1.9% yield
John Laing Infrastructure Fund Ltd - £2,053 - not sure on yield as Digital Look doesn't list it
JPMorgan Claverhouse Inv Trust - £2,025 - 3.6% yield

Can't say I know a lot about any of them, though I obviously intend to reseach them, but am particularly intrigued about 3i and how they've managed to combine such capital growth and a decent yield. Does anyone have any views of any of them and whether they are likely to repeat their good performance of the last couple of years? Not expecting crystal ball stuff - just any insights or warning you care to share that might supplement whatever I can find about them.

Thanks
Spiderbill

richfool
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Re: Four ITs that have done better than most in last 2 years

#173210

Postby richfool » October 12th, 2018, 9:17 am

Spiderbill, JLIF (John Laing Infrastructure) is in the process of being taken over by another company, (or maybe has been already as I can't find it now). The SP re rated upwards by about 18% a few months ago. I sold at that time and re-deployed some of the proceeds into GCP Infrastructure.

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Re: Four ITs that have done better than most in last 2 years

#173234

Postby gbjbaanb » October 12th, 2018, 10:49 am

I guess its all a case of when you bought them that matters. For future options.. who knows!

I do know that 3i (the parent to 3i infrastructure) has done very well for me, but a thread on this forum about those that beat the index shows that many do not perform well at all. Better to hold the index in a passive tracker after all.

I looked at the same aic website for more diversified trusts, and came up with this list to maybe buy when the dust has settled from recent falls:

IBT - biotech
WWH - healthcare
III - 3i venture capital
Finsbury - because its done very well.
Baillie Gifford Japan (BGFD) - Japan apparently is a hedge to UK, we do well, they do badly and vice versa!
SMT - Scottish Mortgage, they've also done well.

I'd buy Smithson and avoid Lindsell Train the latter because it did so well everyone has bought it and the premium to it is insane now. Better look at their underlying holdings and buy them direct!

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Re: Four ITs that have done better than most in last 2 years

#173246

Postby mc2fool » October 12th, 2018, 11:13 am

gbjbaanb wrote:I'd buy Smithson and avoid Lindsell Train the latter because it did so well everyone has bought it and the premium to it is insane now. Better look at their underlying holdings and buy them direct!

Except you can't 'cos some 45% of LTI's portfolio is Lindsell Train Limited, LTI's management company, https://www.theaic.co.uk/companydata/BWSAG/portfolio, which is unlisted and tightly held.

"The company continues to be majority owned (72.7%) by the two founders. This is important because it allows us to maintain the integrity of the business principles on which the firm was founded, as outlined below. A further 3% is owned by staff and the remainder is held by a London-listed investment trust, the Lindsell Train Investment Trust PLC, which was the first investment mandate established by the company." https://www.lindselltrain.com/about-us/our-business.aspx

The chairman's statement in LTI's 2018 report talks almost exclusively about LTL and the risks of that holding. http://documents.financialexpress.net/L ... 251571.pdf, pages 3-5 (as numbered, PDF pages 5-7).

spiderbill
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Re: Four ITs that have done better than most in last 2 years

#173297

Postby spiderbill » October 12th, 2018, 2:52 pm

richfool wrote:Spiderbill, JLIF (John Laing Infrastructure) is in the process of being taken over by another company, (or maybe has been already as I can't find it now). The SP re rated upwards by about 18% a few months ago. I sold at that time and re-deployed some of the proceeds into GCP Infrastructure.


Thanks richfool; I knew I'd read something about them reccently but couldn't bring it to mind. Been down with a chest infection and a hacking cough and barely slept for a week, so am a bit fuzzy right now otherwise I'm sure I'd have found it before bothering the list. You've saved me a pointless investigation on that one.

much obliged
Spiderbill

spiderbill
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Re: Four ITs that have done better than most in last 2 years

#173309

Postby spiderbill » October 12th, 2018, 3:26 pm

gbjbaanb wrote:I guess its all a case of when you bought them that matters. For future options.. who knows!


Indeed - on both counts. It was just the fact of the sudden fall highlighting the four I mentioned when most of the others had fallen that attracted my attention

gbjbaanb wrote:I do know that 3i (the parent to 3i infrastructure) has done very well for me, but a thread on this forum about those that beat the index shows that many do not perform well at all. Better to hold the index in a passive tracker after all.


I'll go and look for that thread. Any particular index? or more worldwide.
Certainly my holding of VWRL bought about 15 months ago is one of the few still in positive territory after yesterday. In contrast I also bought some VERX (dev Europe) and it has fallen 10% in that time - so much for European recovery.


gbjbaanb wrote:IBT - biotech
WWH - healthcare
III - 3i venture capital
Finsbury - because its done very well.
Baillie Gifford Japan (BGFD) - Japan apparently is a hedge to UK, we do well, they do badly and vice versa!
SMT - Scottish Mortgage, they've also done well.


Thanks for those for consideration. Have records of all except III and had toyed with some of them as possibles. Had been planning to research the top 10 holdings of these and a few others in more detail before committing to anything, to make sure I was fully aware of the regional slant, since my original idea for ITs was to get more worldwide and particularly Far East exposure compared to my individual holdings which tend towards the HYP and UK usual suspects.

I hadn't seriously considered Smithson, although I did read the thread for a while. Will take another look once I'm back to full health and the brain is back in gear.

Thanks again for your thoughts
Spiderbill

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Re: Four ITs that have done better than most in last 2 years

#173539

Postby gbjbaanb » October 13th, 2018, 5:31 pm

spiderbill wrote:I hadn't seriously considered Smithson, although I did read the thread for a while. Will take another look once I'm back to full health and the brain is back in gear.

Thanks again for your thoughts
Spiderbill


Consider Smithson, even if its for a short-term trade. Although this doesn't apply as much as before they announced a larger placing, I reckon it'll trade at a premium almost immediately and thus you can sell for a profit without holding it. Though I also reckon it'll do better than most for the future given its very careful active management.


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