The Lemon Fool

I have been investing in ITs and UTs for 25 years and performance has been acceptable. However I am conscious of the fact that 85% of my total holdings are invested in UK companies. I am wondering whether I should diversify by investing more in international trusts or single country/regional trusts. I am not interested in holding individual shares (done that) and have no particular interest in putting in the effort to constantly keep on top of performance.

I should add that I have no particular plans for my investments as I doubt whether I shall ever need the money. On the other hand I feel that if I am overly exposed to one country I should perhaps reduce my exposure to the UK.

Does anyone else invest solely in trusts and, if so, which countries are they currently invested?

My preference would be to invest in one of the big global ITs, which give a wide geographic spread rather than trusts with a specific territorial orientation. You may also get diversity into private equity, for example.

Add one like FCIT or WTAN to get the desired effect.

TJH

tjh290633 wrote:My preference would be to invest in one of the big global ITs, which give a wide geographic spread rather than trusts with a specific territorial orientation. You may also get diversity into private equity, for example.

Add one like FCIT or WTAN to get the desired effect.

TJH

Is now a good time to offload UK investments and purchase international trusts given the currency risks a la BREXIT?

Mike88 wrote:

tjh290633 wrote:My preference would be to invest in one of the big global ITs, which give a wide geographic spread rather than trusts with a specific territorial orientation. You may also get diversity into private equity, for example.

Add one like FCIT or WTAN to get the desired effect.

TJH

Is now a good time to offload UK investments and purchase international trusts given the currency risks a la BREXIT?

Wish I knew the answer to that question, I just don't and I doubt if anyone does to be honest.

As you invest in IT's and OEIC's, I suggest that you look at Lindsell Train Global Equity, Fundsmith and Blue Whale in OEIC's and then FCIT, WTAN for conventional Global IT's and SMT and EWI for more specialised Global IT's. No doubt this will lead you to looking at others as well and as always, DYOR.

Mike88 wrote: I am not interested in holding individual shares (done that) and have no particular interest in putting in the effort to constantly keep on top of performance.

I should add that I have no particular plans for my investments as I doubt whether I shall ever need the money. On the other hand I feel that if I am overly exposed to one country I should perhaps reduce my exposure to the UK.

If you don't want to expend any effort, I suggest you go to the Association of Investment Companies website (theaic.co.uk), select the Global category and pick with a pin one of the larger Investment Trusts, (say over £300 million in assets). Should not be too exhausting.

I hold a spread of Global Growth & Income trusts, as well as trusts in the UK and specific geographical sectors. Thus I hold JPGI, MYI and HINT in the Global G&I sector, Witan in the Global Growth sector, .... plus 2 x Asia Pacific Income trusts, 1 x North American and 1 x European income trust.

For those not familiar with the tickers:
JPGI = JP Morgan Growth & Income trust.
MYI = Murray International income trust
HINT = Henderson International income trust

US has been the place to be invested along with Japan and Asia in general. US is expensive at the moment but in the long term will probably remain the biggest gainer. The trouble with big global trusts like Witan is that they hold the usual FTSE 100 suspects which you probably already have. Witan has BP, Diageo, LLoyds and Unilever among its top ten holdings for example.

These are my spread of ITs (and I think of Berkshire like an IT that invests and operates its own range of business entities), with exception of Berkshire all UK listed but a fair few investment focused overseas or by particular sector (smaller companies/mining/property) .

Aberdeen Asian Income Fund Ordinary NPV Shares
Aberdeen Latin American Income Fund Ord NPV
Athelney Trust Ordinary 25p
Berkshire Hathaway Inc Class B USD0.0033 *R
BlackRock Frontiers Investment Trust Ordinary 1p
BlackRock World Mining Trust Ordinary 5p
City Of London Investment Trust Ordinary 25p Shares
Dunedin Enterprise Investment Trust Ordinary 25p *1
European Assets Trust EUR0.10
Fidelity China Special Situations PLC Ordinary Shares 1p
Henderson Far East Income Ltd Ordinary NPV
JPMorgan Chinese Investment Trust plc Ordinary 25p
JPMorgan Emerging Markets IT plc Ordinary 25p
JPMorgan Indian Investment Trust Ordinary 25p
Merchants Trust plc Ordinary 25p
Middlefield Canadian Inc - GBP PC Part Pref Shs Npv
Murray International Trust plc Ordinary 25p Shares
Standard Life Investment Property Income Trust Ord 1P
Utilico Emerging Markets Trust plc Ordinary GBP 0.01