JPMorgan Global Core Real Assets IPO (JARA)

[stevensfo]

Silverstar - a stock-market truism is to never, ever buy an IT at IPO.

Another is never to over diversify, so your holding of 51 trusts is frankly rather absurd.

How do you define 'over diversify' and what do you base this on?

I know all about the very old studies showing that more than 15 holdings did not increase the return or decrease volatility very much and I remember the term 'Diworsification' coined in the TMF era, but I believe that this was about single company shares in the UK or USA and not taking into account asset allocation and global diversification, oh and was before the Financial crisis.

If Silverstar or anyone can obtain a similar TR and dividend payments with 51 instead of 5 holdings, what's the problem?



Steve

[Silverstar64]

Silverstar - a stock-market truism is to never, ever buy an IT at IPO.

Another is never to over diversify, so your holding of 51 trusts is frankly rather absurd.

I wish you well; but be aware your holding will be in a trust standing at a premium and with a year or more of lag as it invests its new capital; so dividends lower than running rate in the first year.

The shares will inevitably drift to a discount; though for sure JP Morgan will try to sustain par; though they didn't succeed with MATE...

SKYSHIP, thanks for your comments. We will find out after trading starts Monday what this IT settles at in terms of discount/premium. You may well be right, and history supports your view, but just maybe a sucessful global infrastructure fund may trade at a modest premium after the capital is fully deployed. I have 1% to play with, the stamp duty saving and bonus shares with HL.

I agree totally regarding 51 IT holdings and reflecting on the advice here I have already reduced my number of holdings. I'm aiming for 20-30 across 3 SIPPs and 2 ISAs. These are holdings for my wife and I so less dramatic than it sounds (maybe).

MATE is at a discount in my view as some holders of the old fund rolled into MATE bailed out. Performance is modest but we will see how it performs in a prolonged downturn i.e does it offer lower volatility?

[richfool]

Silverstar - a stock-market truism is to never, ever buy an IT at IPO.

Another is never to over diversify, so your holding of 51 trusts is frankly rather absurd.

I wish you well; but be aware your holding will be in a trust standing at a premium and with a year or more of lag as it invests its new capital; so dividends lower than running rate in the first year.

The shares will inevitably drift to a discount; though for sure JP Morgan will try to sustain par; though they didn't succeed with MATE.

Skyship and anyone interested,

The discount on MATE has continued to narrow, currently -4.95% and the SP up around 102p. (Perhaps due to my frequent topping up! ) The yield has thus dropped below 4.00% (3.94%)........ NAV up 11% over 1 year.

https://www.hl.co.uk/shares/shares-sear ... ary-shares

https://citywire.co.uk/funds_insider/in ... undID=4050

I just checked JARA, trading on a premium of +6.45% with a SP: 105.00 -102.40p.

https://www.hl.co.uk/shares/shares-sear ... ts-ltd-ord