Candidates for adding to IT portfolio

[Spet0789]

Interesting thread. The IT bargains of 6 to 9 months ago have pretty much evaporated. I agree about RGL but I wouldn't buy any more. I have been a fan of Law Debenture Trust the last 9 months, but it has perked up a lot recently. Nice capital appreciation and a generous dividend locked into my portfolio there. I have made a couple purchases of BERI this last 6 months and I think it could do well on the back of global economic expansion. Not one for those who moan about annual charges, mind. But we shall see if the management earn it or not over the next few months/years. I am hopeful and I may buy a bit more.

RVF

I and my wife own a good amount of RGL. I have recently started to take a close look at BioPharma Credit (BPCR).

As the name suggests, it’s a specialist credit fund. As it invests in loans, its yield (7% in USD) is treated as interest income not as dividends.

Any others hold?

[Dod101]

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.

I had never heard of Montanaro, in fact had to look up MTE to see what it was. A small trust but maybe best that way and I see they have changed one Edinburgh based director for another Merryn Somerset Webb for Gordon Neil.

Dod

[Spet0789]

Interesting thread. The IT bargains of 6 to 9 months ago have pretty much evaporated. I agree about RGL but I wouldn't buy any more. I have been a fan of Law Debenture Trust the last 9 months, but it has perked up a lot recently. Nice capital appreciation and a generous dividend locked into my portfolio there. I have made a couple purchases of BERI this last 6 months and I think it could do well on the back of global economic expansion. Not one for those who moan about annual charges, mind. But we shall see if the management earn it or not over the next few months/years. I am hopeful and I may buy a bit more.

RVF

I and my wife own a good amount of RGL. I have recently started to take a close look at BioPharma Credit (BPCR).

As the name suggests, it’s a specialist credit fund. As it invests in loans, its yield (7% in USD) is treated as interest income not as dividends.

Any others hold?

A Questor tip, I think? I will not hold anything in USD. Especially USD dividends where the FX charges can be crippling, typically on small amounts of cash.

RVF

Why not, out of interest? And even if you get charged 1% on the FX, which would be very high, that’s only a few hundredths of a %.

[richfool]

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've been having a look at both of the above as possible diversifiers, but have this concern at the back of my mind about bonds selling off or falling if/when interest rates rise.

Noted that, of the two, HDIV has a lower yield, looks to invest in lower risk bonds, holds floating rate notes (good) and has negative capital appreciation. SMIF attracts me more because of it's higher yield (paid monthly) and some modest capital capital appreciation.

SMIF current yield: 6.25% (NAV Premium 3.67%)

HDIV current yield: 5.10% (NAV Disc -7.63%)

[OllyDrod]

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've been having a look at both of the above as possible diversifiers, but have this concern at the back of my mind about bonds selling off or falling if/when interest rates rise.

Noted that, of the two, HDIV has a lower yield, looks to invest in lower risk bonds, holds floating rate notes (good) and has negative capital appreciation. SMIF attracts me more because of it's higher yield (paid monthly) and some modest capital capital appreciation.

SMIF current yield: 6.25% (NAV Premium 3.67%)

HDIV current yield: 5.10% (NAV Disc -7.63%)

The risk of an inflation-driven sell-off is also playing on my mind. I've got a stop-loss on SMIF for that reason. I don't currently hold HDIV but if the discount continues to widen out it's going to look more and more attractive (even with the risk of a sell-off). There was quite a detailed research note from QuotedData on HDIV published this week - not sure if you've seen it?
https://quoteddata.com/research/henders ... g-guns-qd/

- OllyDrod

[richfool]

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've been having a look at both of the above as possible diversifiers, but have this concern at the back of my mind about bonds selling off or falling if/when interest rates rise.

Noted that, of the two, HDIV has a lower yield, looks to invest in lower risk bonds, holds floating rate notes (good) and has negative capital appreciation. SMIF attracts me more because of it's higher yield (paid monthly) and some modest capital capital appreciation.

SMIF current yield: 6.25% (NAV Premium 3.67%)

HDIV current yield: 5.10% (NAV Disc -7.63%)

The risk of an inflation-driven sell-off is also playing on my mind. I've got a stop-loss on SMIF for that reason. I don't currently hold HDIV but if the discount continues to widen out it's going to look more and more attractive (even with the risk of a sell-off). There was quite a detailed research note from QuotedData on HDIV published this week - not sure if you've seen it?
https://quoteddata.com/research/henders ... g-guns-qd/

- OllyDrod

Thanks for your thoughts and the link.

I appreciate the better quality, lower risk holdings of HDIV, and I noted the fact that SMIF was one of only two of those listed in the article trading at a premium. Though I am conscious that if a sector falls out of favour then it's likely to be a case of all ships faltering on the sinking tide, or the baby being thrown out with the bath water, scenarios!!

[torata]

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've been having a look at both of the above as possible diversifiers, but have this concern at the back of my mind about bonds selling off or falling if/when interest rates rise.

Noted that, of the two, HDIV has a lower yield, looks to invest in lower risk bonds, holds floating rate notes (good) and has negative capital appreciation. SMIF attracts me more because of it's higher yield (paid monthly) and some modest capital capital appreciation.

SMIF current yield: 6.25% (NAV Premium 3.67%)

HDIV current yield: 5.10% (NAV Disc -7.63%)

I've been thinking for some time about replacing the bond ETFs I hold with something that's actively managed, and have looked at both SMIF and HDIV, but the ongoing charges of 0.85% and .93% stick in my craw each time. Maybe I'll come to regret it.

torata

[Newroad]

Hi All.

I hold HDIV and BIPS.

I used to hold IPE and CMHY before they merged to create BIPS and for that reason might like to rediversify. NCYF and SMIF are the obvious candidates, but their recent premiums and lack of Morningstar rating discourage me.

We're I buying for the first time again, I would prefer HDIV to NCYF or SMIF for similar reasons.

SMIF has a lower beta than either HDIV or NCYF, which may make it more attractive for some.

Regards, Newroad

[richfool]

Hi All.

I hold HDIV and BIPS.

I used to hold IPE and CMHY before they merged to create BIPS and for that reason might like to rediversify. NCYF and SMIF are the obvious candidates, but their recent premiums and lack of Morningstar rating discourage me.

We're I buying for the first time again, I would prefer HDIV to NCYF or SMIF for similar reasons.

SMIF has a lower beta than either HDIV or NCYF, which may make it more attractive for some.

Regards, Newroad

Are you holders of these bond/fixed interest investments not concerned that their SP's will fall, if interest rates rise, or indeed when talk of tapering arises, (such as is anticipated at Jackson Hole)?

I keep looking at SMIT, but don't want to buy in, if the SP is going to fall next week or later this year.

[Dod101]

Talking in code again. Enjoy!

Dod

[scotia]

Talking in code again. Enjoy!

Dod

Yes - some years ago there was a suggestion that if you wanted to use an EPIC code, you should always include the name with the EPIC on the first time you use it. OK - I'm not an income investor, but the only EPIC I had heard of was HDIV. I appreciate that Income Investors will probably know what the others are - but the names will make the responses more interesting to other investors

HDIV Henderson Diversified Income
BIPS Invesco Bond Income Plus
IPE Defunct
CMHY Defunct
NCYF CQS New City High Yield Fund
SMIF TwentyFour Select Monthly Income Fund

[richfool]

Hi All.

I hold HDIV and BIPS.

I used to hold IPE and CMHY before they merged to create BIPS and for that reason might like to rediversify. NCYF and SMIF are the obvious candidates, but their recent premiums and lack of Morningstar rating discourage me.

We're I buying for the first time again, I would prefer HDIV to NCYF or SMIF for similar reasons.

SMIF has a lower beta than either HDIV or NCYF, which may make it more attractive for some.

Regards, Newroad

Are you holders of these bond/fixed interest investments not concerned that their SP's will fall, if interest rates rise, or indeed when talk of tapering arises, (such as is anticipated at Jackson Hole)?

I keep looking at SMIT, but don't want to buy in, if the SP is going to fall next week or later this year.

[Newroad]

Hi RichFool.

No-one knows the future - but my guess is that interest rates won't rise precipitously. Further, if they do, I'd perhaps be even more worried about equities than high yield bonds.

In context, I prefer the higher rated "Debt" Investment Trusts trading at a discount to NAV versus the lower/unrated ones trading at a premium to NAV. But that's just me.

Regards, Newroad

PS On the use of EPIC codes I have sympathy with both perspectives. In any given area/industry/profession or whatever, shorthand or similar exists. I generally prefer its use where possible, for reasons of both succinctness and clarity. However, I do understand it is a barrier to easy of entry for some. The way I try and square that circle is to be helpful if needed - though to be honest, most on this forum, if they are genuinely interested in the topic matter, are more than capable of quickly figuring out most stuff themselves if needed. Even I need to do that on occasion, e.g. I had no idea what SMIF referred to when I first came across it.

[richfool]

Hi RichFool.

No-one knows the future - but my guess is that interest rates won't rise precipitously. Further, if they do, I'd perhaps be even more worried about equities than high yield bonds.

In context, I prefer the higher rated "Debt" Investment Trusts trading at a discount to NAV versus the lower/unrated ones trading at a premium to NAV. But that's just me.

Regards, Newroad

PS On the use of EPIC codes I have sympathy with both perspectives. In any given area/industry/profession or whatever, shorthand or similar exists. I generally prefer its use where possible, for reasons of both succinctness and clarity. However, I do understand it is a barrier to easy of entry for some. The way I try and square that circle is to be helpful if needed - though to be honest, most on this forum, if they are genuinely interested in the topic matter, are more than capable of quickly figuring out most stuff themselves if needed. Even I need to do that on occasion, e.g. I had no idea what SMIF referred to when I first came across it.

Thanks for your thoughts Newroad, which are noted.

In terms of EPIC's I agree with your point that I have highlighted above. As I was only quoting your previous post and primarily responding to your post, and the EPIC's involved had already been identified further up the thread, (possibly apart from BIPS), I saw no reason to spend even more time looking up their correct full titles and writing an index, particularly as I tend to know them by their tickers anyway, rather than the full titles.

IME (in my experience) I have noted that those who are interested in particular trusts usually know the EPIC's involved. Furthermore in this instance my post was responding to and directed at you, so I saw no need to re-list the full names.

[richfool]

A topical article in today's DT (maybe behind a paywall):

So is inflation coming back or not? The answer is simple: we just don’t know.

Our Wealth Preserver Portfolio was not brought into being because we were convinced that high inflation was inevitable; it was to offer an answer to those readers who could not afford to ignore the risk: those on fixed incomes, perhaps retired, for whom rising prices would destroy all their hopes of financial security.

While we saw inflation as sufficiently likely to warrant such a portfolio, we also acknowledged that deflation could not be ruled out, as the fund manager quoted above hinted at. Our portfolio is designed to cope with both inflation and deflation, even if we accept that the former is the bigger preoccupation for many readers.

Accordingly, this week we add some assets that should perform extremely well in real terms if the cost of living falls but still contribute returns, largely in the form of income, in inflationary times.

Bonds tend to be bad investments in times of inflation, unless their interest rate is index-linked. We have already bought some “linkers” issued by the Government, which although they offer guaranteed real-terms returns pay little or no interest on top. Some other bonds, while riskier, offer much higher rates. We will buy some, via four specialist investment trusts, now. We will deploy 2.5pc of the portfolio into each, for a total exposure of 10pc.

The bottom line/recommenadations were:

Questor says: buy

Tickers: RECI, BPCR, BIPS, TFIF

https://www.telegraph.co.uk/investing/s ... l-deliver/

[77ss]

Talking in code again. Enjoy!

Dod

Yes - some years ago there was a suggestion that if you wanted to use an EPIC code, you should always include the name with the EPIC on the first time you use it. OK - I'm not an income investor, but the only EPIC I had heard of was HDIV. I appreciate that Income Investors will probably know what the others are - but the names will make the responses more interesting to other investors

HDIV Henderson Diversified Income
BIPS Invesco Bond Income Plus
IPE Defunct
CMHY Defunct
NCYF CQS New City High Yield Fund
SMIF TwentyFour Select Monthly Income Fund

It was probably I who suggested it because I find it rude for posters to write in code and it seems that they are persisting. Why should us lesser beings be required to go and look up the EPIC code they are using? Are they superior beings, more competent or simply rude?

Dod

Personally. I find EPICs much more useful than the full names.

If you demand that others bow to your wishes, who is being rude?

[TUK020]

so, back at the original topic - what other ITs (Investment Trusts) are folks looking at?

[yieldhog]

Dod, and anyone else who may be interested,

This Hargreaves Lansdown page can be used to get information about shares or funds:

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

Near the top of the page there is a box labelled Enter name or EPIC. If you have a name but want the EPIC then just put the name, or if you have an EPIC and want to know more about the shares/fund the just put in the EPIC.

I keep this page on my favourites bar so I am always just two clicks away from getting most of the share/fund information I need if I see a name or EPIC that I want to find out more about it.

Hope this helps.

Y

[ReformedCharacter]

Googling will get me nowhere and so I need to go to a platform and insert it somewhere, unless that is you can let me know of a more direct way which there may be for all I knwo.

Dod

I find Hargreaves Lansdown and Google (or actually just Google) very useful for this. If you type a TIDM and 'hl' into Google then almost invariably the first listing will identify the company. For example entering hdiv hl into Google returns Henderson Diversified Income plc Share Price (HDIV) GBP0.01 as the first result.

RC

[Itsallaguess]

but if I am confronted with NCYF how do I find out what it means?

Googling will get me nowhere

Have you tried it?

Try this link, as it's a Google search on just the 'NCYF' text -

https://www.google.com/search?q=ncyf

As you'll see if you click on the above URL, this is what's returned -



So in fact, noting the two red boxes in the snapshot above, Googling nothing more than the ticker will get you exactly where you'd want to be if you were interested in finding out more about it...

Cheers,

Itsallaguess