Schroder mid cap (SCP)

[barchid]

Does anyone have any thoughts on this trust?
It used to be a star performer on a very low discount but since Brexit it has widened out so much (17%) it is starting to look rather tempting to me. At some point in the future Brexit will be resolved and smaller companies in the 250 index will look attractive again. £ has dropped so much in past few years it may be the right time to lighten up a little on overseas holdings, realising the healthy gains and put a foot into this trust, for what it's worth I started that process this week.

[TahiPanasDua]

Sorry no knowledge of this IT.

However, I would beware of making investment decisions based on estimates of the timing of a B----t solution.

This, thank heavens, is not the place to discuss politics but you have raised the prospect of an eventual solution and a probable rebound in share prices and the exchange rate. This may be true but the timescale is realistically being estimated in years, possibly 7 to 10 which is typical. There is a great misconception that the current ghastly B----t bore will disappear after the deal/no deal fiasco is resolved one way or the other in the next few months. There can't be a no-deal situation as the UK must proceed to negotiate a trade deal with the EU, our biggest trading partner, after we leave. We are currently debating only the leaving terms which are misrepresented as a "deal" by most parties.

It is inevitable that there will be a long drawn out deal negotiation with the EU after we leave and a similar protracted dialogue with the USA despite what you currently hear.

This is not a political statement. As investors we have to take an unbiased and dispassionate view of likely outcomes.

Sorry for raising this ghastly subject.

TP2.

[monabri]

For the past 5 years (even before Brexit....if such a time existed ) it underperformed Vanguard's VMID. Post Brexit, I guess that the trend will continue - what's good for SCP will be good for VMID.

(Brexit timescales...a long time into the future - I'm not even as 'optimistic' as TP2).



Here's the link to the comparison tool.

https://www.hl.co.uk/funds/fund-discoun ... ion/charts

[barchid]

Monabri
Thanks for that chart, very illuminating, I had no idea how well VMID had done, in fact it was never on my radar.
Appreciated.

[BrummieDave]

Monabri
Thanks for that chart, very illuminating, I had no idea how well VMID had done, in fact it was never on my radar.
Appreciated.

I hold Mercantile for exposure to mid caps; you may wish to add that to the graph for comparison in case you wish to maintain exposure to the UK for the post Brexit bounce you say may potentially occur.

[Muddywaters]

I held for a few years but I had a cull of active funds after I decided that holding more than 6 or 7 was too much and had a complete overhaul.

This got the chop. I was tempted to hold because of the discount but in the end I’ve got some uk small/mid cap exposure through FCS ( or whatever it’s calling itself now) and didn’t want to overdiversify

I share some of your thoughts. I’ve got pension money to invest this year and I’m worried about buying foreign assets with sterling where it is. I have virtually no UK bias.

Given my active fund rules I won’t be adding but if I was then UK smaller companies trust would probably top the list