Most ITs seem to use indices or compound indices as their benchmark. As such, if they drop by 29% in a 30% correction, they have still beaten their benchmark and need not fret.
I am sure I have seen some that target, for example, LIBOR + 4% over a rolling five-year period.
Is anyone aware of any? Or better still, is there an efficient way to compare the benchmarks of various ITs? Or does one have to simply work there way through the prospectuses (prospectii?) OEICs also of interest, but ITs preferred.
Got a credit card? use our Credit Card & Finance Calculators
Thanks to Rhyd6,eyeball08,Wondergirly,bofh,johnstevens77, for Donating to support the site
ITs that are benchmarked against LIBOR or CPI/RPI
-
- Lemon Slice
- Posts: 425
- Joined: October 12th, 2018, 5:01 pm
- Has thanked: 46 times
- Been thanked: 406 times
Re: ITs that are benchmarked against LIBOR or CPI/RPI
Ha, yes, I can help. I was analysing this just this week amazingly. There are three, and only three such investment companies. Below is a link to the factsheet of each so you can assure yourself it is accurate:
Aberdeen Diversified, M&G Income and Invesco Balanced Risk (page 5 of annual report)
https://documentscdn.financialexpress.n ... 016779.pdf
https://documentscdn.financialexpress.n ... 231487.pdf
https://documentscdn.financialexpress.n ... 395134.pdf
Aberdeen Diversified, M&G Income and Invesco Balanced Risk (page 5 of annual report)
https://documentscdn.financialexpress.n ... 016779.pdf
https://documentscdn.financialexpress.n ... 231487.pdf
https://documentscdn.financialexpress.n ... 395134.pdf
-
- Lemon Slice
- Posts: 425
- Joined: October 12th, 2018, 5:01 pm
- Has thanked: 46 times
- Been thanked: 406 times
Re: ITs that are benchmarked against LIBOR or CPI/RPI
NotSure wrote:Most ITs seem to use indices or compound indices as their benchmark. As such, if they drop by 29% in a 30% correction, they have still beaten their benchmark and need not fret.
I am sure I have seen some that target, for example, LIBOR + 4% over a rolling five-year period.
Is anyone aware of any? Or better still, is there an efficient way to compare the benchmarks of various ITs? Or does one have to simply work there way through the prospectuses (prospectii?) OEICs also of interest, but ITs preferred.
Oh. And this may or may not be of interest to you.
On November 30, 2020, the International Exchange (ICE) Benchmark Administration (the “IBA”), the administrator of LIBOR, announced its intention to cease publishing one-week and two-month LIBOR on December 31, 2021 and the remaining tenors (overnight, one-month, three-month, six-month and 12-month) on June 30, 2023
-
- Lemon Slice
- Posts: 584
- Joined: March 1st, 2019, 11:33 am
- Has thanked: 33 times
- Been thanked: 235 times
Re: ITs that are benchmarked against LIBOR or CPI/RPI
DavidM13 wrote:Ha, yes, I can help. I was analysing this just this week amazingly. There are three, and only three such investment companies. Below is a link to the factsheet of each so you can assure yourself it is accurate:
Aberdeen Diversified, M&G Income and Invesco Balanced Risk (page 5 of annual report)
https://documentscdn.financialexpress.n ... 016779.pdf
https://documentscdn.financialexpress.n ... 231487.pdf
https://documentscdn.financialexpress.n ... 395134.pdf
Though note that Aberdeen Diversified Growrth & Income gave up, on 23rd Feb this year, targeting a total return of LIBOR+5.5%, and now aim for a NAV+reinvested dividends return of 6%, over a rolling 5 year period. Since adopting the previous policy, the share price+dividend return hadn't kept up with LIBOR over the longest period (they hadn't quite reached 5 years), let alone +5.5%. I suppose at least they have more control over NAV than share price (they managed about 2.8% pa over 4 years).
-
- The full Lemon
- Posts: 12636
- Joined: November 8th, 2016, 7:21 pm
- Been thanked: 2608 times
Re: ITs that are benchmarked against LIBOR or CPI/RPI
Ruffer Investment Company Ltd. (RICA) is targeted, so not exactly benchmarked, at an undemanding total annual return, after all expenses, of at least twice the Bank of England Bank Rate.
Performance
The Company’s objective is to achieve a positive total annual return, after all expenses, of at least twice the Bank of England Bank Rate.
https://www.ruffer.co.uk/-/media/Ruffer-Website/Files/Downloads/RIC/Documents/RIC_annual_report_30June2020.pdf?la=en
Performance
The Company’s objective is to achieve a positive total annual return, after all expenses, of at least twice the Bank of England Bank Rate.
https://www.ruffer.co.uk/-/media/Ruffer-Website/Files/Downloads/RIC/Documents/RIC_annual_report_30June2020.pdf?la=en
Return to “Investment Trusts and Unit Trusts”
Who is online
Users browsing this forum: No registered users and 28 guests