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"Value" Focused Funds and ITs

Closed-end funds and OEICs
SoBo65
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Re: "Value" Focused Funds and ITs

#347538

Postby SoBo65 » October 13th, 2020, 11:52 pm

I bought some Edinburgh Investment Trust today on the basis that the concentrated portfolio looks reasonably sound, it is a large liquid trust of c£800m NAV trading on a 13.5% discount, Ok the dividend may reduce, but that’s fine, compared to some other trusts seems somewhat oversold.

Hyndford
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Re: "Value" Focused Funds and ITs

#347699

Postby Hyndford » October 14th, 2020, 6:12 pm

richfool wrote:Interesting you mention Impax Environmental Markets (IEM). I have been looking at that over the last week or so. I like what it invests in and its capital performance to date, though I think I might be a bit too late to the party if I bought at the current SP, and there isn't much of a dividend to help compensate. It would however be an alternative to holding renewable energy companies (on very high premiums -TRIG & JLEN) directly.


I'm still adding to IEM as part of my monthly ISA contribution.

There's a recent article on citywire that looks at it's constituents. You're right that it covers renewables and infrastructure, but also more...

https://citywire.co.uk/investment-trust ... x/a1411669

msantiago
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Re: "Value" Focused Funds and ITs

#420458

Postby msantiago » June 18th, 2021, 12:27 pm

Thanks again for all the excellent suggestions with the rebalancing of my portfolio

A few follow-up questions that I was hoping to get some advice on

Across my ISA/SIPP/LISA I have around 25 holdings still - preferably would have a lower number of holdings for ease of maintenance. My minimum holding is around 4k but generally holdings are five figures.

Aside from maybe scaling back my commodities exposure (will likely reduce Blackrock gold and perhaps sell all my ishares global clean energy holding) and maybe adding to Japan / Blackrock Frontier, I'm generally ok with the composition of my portfolio across sectors/regions - though would welcome any thoughts and suggestions otherwise

Questions are
1) Is there any obvious duplication / crossover in my holdings that I might want to think about consolidating? One consideration was selling VEVE / USA and increasing MWY / EWI / SMT
2) I've been looking at PHI for some time as well as a Vietnam focused trust - though adding these would run counter to my objective to reduce holdings. Is it unnecessary tinkering to consider these trusts given EM and frontier exposure I already have? the EM trusts have a very high proportion of SE Asia exposure and some crossover with PHI
3) US weighting seems quite light @ 7% but the global funds are heavily weighted to US. Clearly US stocks are very expensive - both on an historical basis and compared to other regions - but as a long-term investor (25-30 year+ timeframe to retirement) should I consider having a higher % in specific US trusts / trackers?
4) Should I consider adding a defensive / "all weather" trust like RICA / CGT? I like the Ruffer investment philosophy and strategy - particularly if we move into a world of higher inflation (acknowledge there's some debate about whether this is structural or transitory) - but is a defensive trust overly conservative given my investment horizon?

Below is my current portfolio composition.

Thank you


scotia
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Re: "Value" Focused Funds and ITs

#420657

Postby scotia » June 18th, 2021, 11:54 pm

msantiago wrote:Below is my current portfolio composition.

Its certainly diversified! And it should keep you occupied as you try to keep track as to how all sectors are performing
It would be interesting to know how it compares fully invested in a world tracker (e,g, Vanguard VWRL)

Adamski
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Re: "Value" Focused Funds and ITs

#420674

Postby Adamski » June 19th, 2021, 7:58 am

I personally don't like too many holdings as this is replicating a tracker. Many investors do this so no issue if your choice.

my own portfolio I find need to hold over 5% of something for it to have a material impact on overall results. So I'd decide what area to be overweight in and sell the small <3% holdings, and reinvest in 'conviction' holdings.

Of course a concentrated portfolio can underperform as well as outperform. But the alternative is to simply hold tracker funds.


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