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Income IT's Europe and North American

Closed-end funds and OEICs
Avantegarde
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Re: Income IT's Europe and North American

#158197

Postby Avantegarde » August 9th, 2018, 11:29 am

"Avantagarde, I'm a bit puzzled as to why you recently "dumped" your holding of NAIT."

Simple. In the past five years the total return (share price increase including the effect of dividends reinvested) of an S&P 500 tracker had been 100%. NAIT's total return had been about 75%. As I was always reinvesting my dividends, rather than living off them, I was clearly wasting my money by paying a vastly higher set of charges for a distinctly inferior return. Had I put my money in a tracker five years ago, instead of NAIT, I would be 33% better off.

richfool
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Re: Income IT's Europe and North American

#158237

Postby richfool » August 9th, 2018, 2:12 pm

Avantegarde wrote:"Avantagarde, I'm a bit puzzled as to why you recently "dumped" your holding of NAIT."

Simple. In the past five years the total return (share price increase including the effect of dividends reinvested) of an S&P 500 tracker had been 100%. NAIT's total return had been about 75%. As I was always reinvesting my dividends, rather than living off them, I was clearly wasting my money by paying a vastly higher set of charges for a distinctly inferior return. Had I put my money in a tracker five years ago, instead of NAIT, I would be 33% better off.

According to the Citywire performance charts to 16th July 2018:-

NAIT's 5 year NAV growth (without dividends reinvested) was: 89.5%

JAM's 5 year NAV growth (without dividends reinvested) was : 111.1%

http://citywire.co.uk/money/investment- ... ts-by-sect

I cant find a source that quotes the S&P 500 with dividends reinvested, but this source below, gives 67% for the 5 year growth to March 2018:
Last 5 Years:
Over the 5 years ended March of 2018, the S&P 500 had a rank of 4 with a
return of 67%
. The top ranked index during the 5 year period was the NASDAQ
100 Index, with a return of 129%. The worst performing index during that period
was the Straits Times Stock Index with a return of 3%.
The median return for all stock market indexes during this time period was 60%.
The average return for the indexes over the 5 years was 51%.


http://www.forecast-chart.com/historical-sp-500.html

Avantegarde
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Re: Income IT's Europe and North American

#158291

Postby Avantegarde » August 9th, 2018, 5:12 pm

richfool wrote:According to the Citywire performance charts to 16th July 2018:-

NAIT's 5 year NAV growth (without dividends reinvested) was: 89.5%

JAM's 5 year NAV growth (without dividends reinvested) was : 111.1%

http://citywire.co.uk/money/investment- ... ts-by-sect

I cant find a source that quotes the S&P 500 with dividends reinvested, but this source below, gives 67% for the 5 year growth to March 2018:
Last 5 Years:
Over the 5 years ended March of 2018, the S&P 500 had a rank of 4 with a
return of 67%
. The top ranked index during the 5 year period was the NASDAQ
100 Index, with a return of 129%. The worst performing index during that period
was the Straits Times Stock Index with a return of 3%.
The median return for all stock market indexes during this time period was 60%.
The average return for the indexes over the 5 years was 51%.


http://www.forecast-chart.com/historical-sp-500.html


The figures from the AIC website tell me that the 5-year share price total return on NAIT is now 88% (things have improved since I took my decision).

But the fact sheet for the HSBC American Index Fund (an S&P 500 tracker), which is available on the Share Centre website (the broker I use), says the share price total return for the past 5 years is now 120%!

Here is the link: https://www.share.com/investments/funds ... x-fnd/g19b

So, to date, the tracker has been 36% better (and vastly cheaper) than the NAIT.

richfool
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Re: Income IT's Europe and North American

#158318

Postby richfool » August 9th, 2018, 6:44 pm

Thank you Avantegarde. Interesting.

The only thing I can think of in mitigation is that NAIT's current yield is higher at 2.88% (as against 1.37%) and was previously higher before the increase in its SP.

tieresias
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Re: Income IT's Europe and North American

#162393

Postby tieresias » August 27th, 2018, 12:26 pm

FWIW I replaced NAIT in my "foreign income IT portfolio" with Blackrock North American Income Trust (BRNA) about six months ago because of the higher yield (4.4% as opposed to 2.9%) as well as higher dividend growth (5yr dividend growth p.a. of 15.3% as opposed to 7.9%). Figures taken from the AIC site just now. The BRNA yield was actually higher at the time, but the SP has gone up by about 25% since I bought it.


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