Candidates for adding to IT portfolio

[spiderbill]

Hi All
Just considering an addition to my current collection, which is:

                                                                                 Value     Div    Fcst 
Share                           Epic    Sector                                  %Total  %Total   Yield
Henderson Far East Income Ltd.  HFEL    IT - Asia Pacific Income                35.48%  53.46%   7.10%
Murray International Trust      MYI     IT - Global Equity Income                5.86%   5.85%   4.70%
F and C Investment Trust        FCIT    IT - Global                             19.62%   6.24%   1.50%
Merchants Trust                 MRCH    IT - UK Equity Income                   11.87%  15.87%   6.30%
Blackrock North American Incom  BRNA    IT - North America                       5.97%   6.08%   4.80%
JPMorgan Global Growth & Incom  JGGI    IT - Global Equity Income               16.31%  11.77%   3.40%
JPMorgan Japanese Inv Trust     JFJ     IT - Japan                               4.89%   0.73%   0.70%

Running Yield:    4.71%

                                                  Value     Div
Sector                                           %Total  %Total
IT - Asia Pacific Income                         35.48%  53.46%
IT - Global Equity Income                        22.18%  17.62%
IT - Global                                      19.62%   6.24%
IT - UK Equity Income                            11.87%  15.87%
IT - North America                                5.97%   6.08%
IT - Japan                                        4.89%   0.73%

I had various lists of possibles about a year and half ago but of course there's been a lot of change over that time so a rethink from scratch seems advisable.
Looking probably for another mixed growth/income a la JGGI which has been doing very well for me, but am undecided about geography. The obvious area not represented is Europe - anyone got any suggestions there? Or indeed anywhere else that I'm missing. Just looking for ideas to research so no need to go into great detail. Thanks for any suggestions.

Spiderbill

[seagles]

Looking probably for another mixed growth/income a la JGGI which has been doing very well for me, but am undecided about geography. The obvious area not represented is Europe - anyone got any suggestions there? Or indeed anywhere else that I'm missing. Just looking for ideas to research so no need to go into great detail. Thanks for any suggestions.

Spiderbill

I chose JETI when I was looking at Europe. Currently 4.5% yield and discount to NAV of 10.3. Getting to the peak price of 52 weeks though.

[dundas666]

For Europe you could look at European Assets Trust (EAT), currently yielding 5.8%

[spiderbill]

I chose JETI when I was looking at Europe. Currently 4.5% yield and discount to NAV of 10.3. Getting to the peak price of 52 weeks though.

Remember looking at them a couple of years ago. Will take another look and see what the current main constituents are. Still about 10% below the pre-Covid levels so could still have some legs.

Thanks

[spiderbill]

For Europe you could look at European Assets Trust (EAT), currently yielding 5.8%

I recall some talk about them a while back but seem to remember that something put me off them at the time. Did they do a big consolidation of shares at one point? Will see if I can find the details and then take a proper look.

Thanks

[monabri]

Perhaps the way the income for the divi is derived?

"aim to pay Shareholders a dividend of 6% based on the Net Asset Value (NAV) on 31 December each year"

So, if the NAV falls on 31 Dec - so does the dividend for the next year.

[77ss]

Hi All
Just considering an addition to my current collection, which is:

                                                                                 Value     Div    Fcst 
Share                           Epic    Sector                                  %Total  %Total   Yield
Henderson Far East Income Ltd.  HFEL    IT - Asia Pacific Income                35.48%  53.46%   7.10%
Murray International Trust      MYI     IT - Global Equity Income                5.86%   5.85%   4.70%
F and C Investment Trust        FCIT    IT - Global                             19.62%   6.24%   1.50%
Merchants Trust                 MRCH    IT - UK Equity Income                   11.87%  15.87%   6.30%
Blackrock North American Incom  BRNA    IT - North America                       5.97%   6.08%   4.80%
JPMorgan Global Growth & Incom  JGGI    IT - Global Equity Income               16.31%  11.77%   3.40%
JPMorgan Japanese Inv Trust     JFJ     IT - Japan                               4.89%   0.73%   0.70%

Running Yield:    4.71%

                                                  Value     Div
Sector                                           %Total  %Total
IT - Asia Pacific Income                         35.48%  53.46%
IT - Global Equity Income                        22.18%  17.62%
IT - Global                                      19.62%   6.24%
IT - UK Equity Income                            11.87%  15.87%
IT - North America                                5.97%   6.08%
IT - Japan                                        4.89%   0.73%

I had various lists of possibles about a year and half ago but of course there's been a lot of change over that time so a rethink from scratch seems advisable.
Looking probably for another mixed growth/income a la JGGI which has been doing very well for me, but am undecided about geography. The obvious area not represented is Europe - anyone got any suggestions there? Or indeed anywhere else that I'm missing. Just looking for ideas to research so no need to go into great detail. Thanks for any suggestions.

Spiderbill

How wedded are you to yield?

As far as Europe is concerned, I have recently added BRGE and so far so good. Only 1.1% yield - but then, I look for total return. The 5 yr TR is quite good at about 146%.

[scotia]

As far as Europe is concerned, I have recently added BRGE and so far so good. Only 1.1% yield - but then, I look for total return. The 5 yr TR is quite good at about 146%.

So have I.

[TUK020]

Looking probably for another mixed growth/income a la JGGI which has been doing very well for me, but am undecided about geography. The obvious area not represented is Europe - anyone got any suggestions there? Or indeed anywhere else that I'm missing. Just looking for ideas to research so no need to go into great detail. Thanks for any suggestions.

Spiderbill

I chose JETI when I was looking at Europe. Currently 4.5% yield and discount to NAV of 10.3. Getting to the peak price of 52 weeks though.

Have a very small position in JETI. What held me off adding was their level of exposure to financials

[spiderbill]

Perhaps the way the income for the divi is derived?

"aim to pay Shareholders a dividend of 6% based on the Net Asset Value (NAV) on 31 December each year"

So, if the NAV falls on 31 Dec - so does the dividend for the next year.

That does seem to ring a bell - thanks for the reminder. Not necessarily a killer but something to remember.

[spiderbill]

How wedded are you to yield?

As far as Europe is concerned, I have recently added BRGE and so far so good. Only 1.1% yield - but then, I look for total return. The 5 yr TR is quite good at about 146%.

Not totally wedded - I have plenty of HY elsewhere. BRGE is a new one to me so I'll add it to the research pile, thanks.

[OllyDrod]

Looking probably for another mixed growth/income a la JGGI which has been doing very well for me, but am undecided about geography. The obvious area not represented is Europe - anyone got any suggestions there? Or indeed anywhere else that I'm missing. Just looking for ideas to research so no need to go into great detail. Thanks for any suggestions.

Spiderbill

A couple of observations and some more 'possibles' for consideration:

You've no pure-play smaller companies exposure (which may of course be deliberate) but I'd expect these to continue to do well as the global economy recovers. If you want a European slant, what about Montanaro European Smaller Companies (MTE) or, if you want more of a yield, European Assets (EAT) as dundass666 suggests? Plenty of good options in the UK too - my holdings in Henderson Smaller (HSL), Rights and Issues (RII) and Herald (HRI) have all done well YTD, but relatively low yields (in fact zero for HRI).

You've also got no property. I suspect a lot of the traditional REITs are value-traps at present, but TR Property (TRY) has an excellent track record, with lots of European exposure and is primarily in securities rather than physical assets which nominally allows it to be much fleeter of foot than some of its competitors. Another alternative might be Tritax Eurobox (BOXE/EBOX) which stands to benefit from long-term e-commerce trends (though beware the punchy fees).

You've no real bond exposure either. Henderson Diversified Income (HDIV) is on a nice discount at the moment and pays around 5%. I also like TwentyFour Select Monthly Income (SMIF) which may have extra appeal if you're relying on dividend income.

The other area to look at IMO is Infrastructure. Lots of these on punchy premia, but Ecofin Global Utilities & Infrastructure (EGL) is more or less at par and has done very well for me over the last couple of years. Like TRY it invests primarily in securities, not physical assets. I suspect it flies somewhat under the radar being in the tiny 'Infrastructure Securities' AIC sector, rather than in 'Infrastructure' with 3i, HICL, GCP etc. Worth a look.

- OllyDrod

[77ss]

How wedded are you to yield?

As far as Europe is concerned, I have recently added BRGE and so far so good. Only 1.1% yield - but then, I look for total return. The 5 yr TR is quite good at about 146%.

Not totally wedded - I have plenty of HY elsewhere. BRGE is a new one to me so I'll add it to the research pile, thanks.

Looking at my IT collection, I realise that SLPE is also predominantly Europe focussed (approx. 15% US, 15% UK, 70% rest of Europe).

As another poster has observed, some smaller company ITs are doing pretty well (I hold HSL and THRG, but they are both UK). SLPE is private equity and invested in small-medium companies ($50m to $6bn). Yield of 3%, and over the past 4 years it has done fairly well for me.

[richfool]

How wedded are you to yield?

As far as Europe is concerned, I have recently added BRGE and so far so good. Only 1.1% yield - but then, I look for total return. The 5 yr TR is quite good at about 146%.

Not totally wedded - I have plenty of HY elsewhere. BRGE is a new one to me so I'll add it to the research pile, thanks.

Spiderbill, 77ss beat me to it on BRGE. I added BRGE last year. It has a low yield, but has performed well in terms of capital appreciation, vying for top place with BGEU. That would be my suggestion in the European space.
https://www.hl.co.uk/shares/shares-sear ... .-ord-0.1p

https://citywire.co.uk/wealth_manager/i ... ePeriod=12

I do also hold EAT for it's high yield.

You could also have a look at JP Morgan's Multi-Asset growth & Income trust (MATE), currently yielding c 4.1%, or even BERI (Blackrock Energy & Resources Income trust) for its exposure to basic resources, miners, energy and even renewables.

https://www.hl.co.uk/shares/shares-sear ... ome-ord-1p

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

I would also second OllyDrod's choice of EGL.

[spiderbill]

A couple of observations and some more 'possibles' for consideration:

You've no pure-play smaller companies exposure (which may of course be deliberate) but I'd expect these to continue to do well as the global economy recovers. If you want a European slant, what about Montanaro European Smaller Companies (MTE) or, if you want more of a yield, European Assets (EAT) as dundass666 suggests? Plenty of good options in the UK too - my holdings in Henderson Smaller (HSL), Rights and Issues (RII) and Herald (HRI) have all done well YTD, but relatively low yields (in fact zero for HRI).

You're right, I don't. I used to have a few smaller companies in individual shares but that was back when I was buying in too-small amounts and most of those have been either sold or hit by Covid. EAT seems to be a popular recommendation so I may well start there and then look at others.

You've also got no property. I suspect a lot of the traditional REITs are value-traps at present, but TR Property (TRY) has an excellent track record, with lots of European exposure and is primarily in securities rather than physical assets which nominally allows it to be much fleeter of foot than some of its competitors. Another alternative might be Tritax Eurobox (BOXE/EBOX) which stands to benefit from long-term e-commerce trends (though beware the punchy fees).

I do have Regional REIT in my HYP-ish share portfolio - never quite sure whether it should sit in individual shares or ITs. It has been hit by Covid worries (rather unfairly in its case I feel) so my average buying price of 96p is a bit underwater at the moment, but it's showing signs of recovery and the dividends are excellent. I'll certainly look at your suggestions though.

You've no real bond exposure either. Henderson Diversified Income (HDIV) is on a nice discount at the moment and pays around 5%. I also like TwentyFour Select Monthly Income (SMIF) which may have extra appeal if you're relying on dividend income.

I confess I know almost nothing about bonds and it's been a bit of a blind spot. At my age (66 later this month) I should probably look into them.

The other area to look at IMO is Infrastructure. Lots of these on punchy premia, but Ecofin Global Utilities & Infrastructure (EGL) is more or less at par and has done very well for me over the last couple of years. Like TRY it invests primarily in securities, not physical assets. I suspect it flies somewhat under the radar being in the tiny 'Infrastructure Securities' AIC sector, rather than in 'Infrastructure' with 3i, HICL, GCP etc. Worth a look.

Certainly worth a look.

Many thanks for a well considered and informative response, much appreciated.

Spiderbill

[spiderbill]

Looking at my IT collection, I realise that SLPE is also predominantly Europe focussed (approx. 15% US, 15% UK, 70% rest of Europe).

As another poster has observed, some smaller company ITs are doing pretty well (I hold HSL and THRG, but they are both UK). SLPE is private equity and invested in small-medium companies ($50m to $6bn). Yield of 3%, and over the past 4 years it has done fairly well for me.

Thanks for coming back on this - SLPE is another I haven't really looked at up to now so I'll give it the treatment too.

cheers
Spiderbill

[terminal7]

EGL - I find the charges hefty - a big chunk over say a five year period.

T7

[spiderbill]

Spiderbill, 77ss beat me to it on BRGE. I added BRGE last year. It has a low yield, but has performed well in terms of capital appreciation, vying for top place with BGEU. That would be my suggestion in the European space.
https://www.hl.co.uk/shares/shares-sear ... .-ord-0.1p

https://citywire.co.uk/wealth_manager/i ... ePeriod=12

I do also hold EAT for it's high yield.

Ok, these two seem to be well regarded so are sitting high on my list. Thanks for the links too.

You could also have a look at JP Morgan's Multi-Asset growth & Income trust (MATE), currently yielding c 4.1%, or even BERI (Blackrock Energy & Resources Income trust) for its exposure to basic resources, miners, energy and even renewables.

https://www.hl.co.uk/shares/shares-sear ... ome-ord-1p

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

I would also second OllyDrod's choice of EGL.

I seem to have been gravitating towards JP Morgan recently (badly timed in the case of JFJ) but that one has escaped me - will certainly take a look. I had looked at BERI a while back but IIRC it seemed to be struggling at the time. Looking at the graph over the last year I should have bought some last summer.

Many thanks for the suggestions

Spiderbill

[Dod101]

Not entirely clear what spiderbill is looking for but Smithson, Caledonia and RIT Capital Partners all provide something a bit different. For a large generalist, Alliance has done well since it outsourced its investment management.

Unless you want or need income, I would not buy EAT since it depends on returning some capital each year to provide its so called income.

Anyway, if we are setting out to cover the world markets we would be cheaper to hold a world tracker.

Dod

[doug2500]

I swapped EAT for MTE and it's worked well for me (very well).

Past performance is no guarantee.........

I have a soft spot for Mid Wynd which offers something different I think.