Next IT Selection

[pds2008]

Morning all

My current holdings of IT's are CTY, MRCH, HHI, HFEL and MYI. Looking to bolster this selection in the next couple of weeks with one or two others. I am keen on a reasonable level of income but my primary aim is to keep a good balance of funds. Thinking about at least one of these to have a European focus. Would appreciate any suggestions.

Yell

[JuanDB]

JPMorgan European Investment Trust (JETI) is my current choice for European income.

Recent capital performance hasn’t been great however dividend growth is above inflation and can currently be bought on an 11% discount.

Cheers,

Juan.

[richfool]

Morning all

My current holdings of IT's are CTY, MRCH, HHI, HFEL and MYI. Looking to bolster this selection in the next couple of weeks with one or two others. I am keen on a reasonable level of income but my primary aim is to keep a good balance of funds. Thinking about at least one of these to have a European focus. Would appreciate any suggestions.

Yell

You could look at JPGI, a Global G&I trust. It includes Europe, though has a larger focus on the US. (Your existing holding of MYI has a low exposure to the US so JPGI would provide some balance to that). Or alternatively HINT another Global G&I trust, which has c 40% exposure to Europe, though excludes the UK.

[pds2008]

JPMorgan European Investment Trust (JETI) is my current choice for European income.

Recent capital performance hasn’t been great however dividend growth is above inflation and can currently be bought on an 11% discount.

Cheers,

Juan.

Thanks - Can you explain about how to access this with the 11% discount. To date I have only looked at priced via my HSBC Investdirect account. Do you know if the discount is included in this quote?

Yell

[pds2008]

Morning all

You could look at JPGI, a Global G&I trust. It includes Europe, though has a larger focus on the US. (Your existing holding of MYI has a low exposure to the US so JPGI would provide some balance to that). Or alternatively HINT another Global G&I trust, which has c 40% exposure to Europe, though excludes the UK.

Thanks - JPGI were on my radar. I was a little nervous about the value of US stocks, but a) what the hell do I know, and b) it would add some balance to my current selection. I might go half and half with JETI

Yell

[jonesa1]

Can you explain about how to access this with the 11% discount. To date I have only looked at priced via my HSBC Investdirect account. Do you know if the discount is included in this quote?

Yell

The discount is the gap between the price it fetches on the stock market and the value of the underlying assets minus liabilities (known as Net Asset Value, or NAV). The discount is purely because the market values the IT as being less than the sum of its parts, or because the market doesn't trust the valuations applied to some or all of the parts. You automatically buy an IT with the discount (or premium in some cases) "applied".

[Dod101]

WIth Germany reported to be on the verge of recession I am surprised at the enthusiasm for buying European focussed ITs. Most generalist trusts will have some exposure to Europe depending on the thoughts of the managers. I prefer it that way.

pds2008. I am not being crfitical as we all need to start somewhere but I would recommend that you get hold of the Annual Reports for a couple of your ITs and study them. The concept of a discount or premium to Net Asset Value (NAV) is quite important and also quite fundamental to understanding the merits of any investment trust. There are also books on the general subject which might be worthwhile taking a look at.

You really need to understand discounts/premiuns to NAV, Gearing, Ongoing Charges and other terms common to ITs. Many Annual Reports have a glossary explaining them and I expect Mr Google will help as well.

Dod

[gbjbaanb]

I suppose the point is that everyone else is on the verge of recession too . I woulnd't buy Euro stocks at the moment, a no-deal Brexit will not help share prices - wait until after it happens and then buy

This week's Shares mag did a piece on Euro trusts. Blackrock Gtr Europe was the best recently - 10/90/247% over 1/5/10yr (and Fidelity Euro Values at 10/84/206% is almost as good but with a bigger discount) , but Jupiter Euro Opportunities was best longer ago - 0/111/532%