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Post by Fletchsmile on Jan 11, 2016 9:55:08 GMT 7
Some ideas to consider including specific investment trusts... ================================================ Should you buy last year's best or worst-performing investment trusts?Kate Marshall | 8 January 2016 | A A A The New Year presents an opportune time to reflect on 2015's best and worst-performing investment trusts and examine their future prospects. Which are worth considering in 2016? The winners Trusts with exposure to global smaller companies are likely to have made healthy profits over the past year. On home soil, the UK Smaller Companies sector was strong. While many of the UK's largest companies operate in last year's poorest-performing areas, such as oil, resources and banking, smaller and medium-sized companies tend to be more domestically focused, with performance more closely linked to the UK economy. UK investment trusts with a bias towards smaller businesses have therefore tended to outperform those with a larger company focus. Standard Life UK Smaller Companies Trust plc and BlackRock Smaller Companies Trust returned 38% and 29.3% respectively. The former is managed by Harry Nimmo, one of our favoured UK smaller company managers, who we believe is capable of delivering good long-term returns, although periods of volatility should be expected in this higher risk area. Elsewhere, the Japanese Smaller Companies sector proved a strong performer, delivering average share price growth of 27%, while the broader Japanese sector containing companies of all sizes was not far behind with a return of 20%. It’s important to remember that all investments can go down as well as up and you could get back less than you invest. Past performance is not a reliable guide to the future. contd........... www.hl.co.uk/news/articles/should-you-buy-last-years-best-or-worst-performing-investment-trusts |
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AyG
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Post by AyG on Jan 11, 2016 14:27:32 GMT 7
Sorry, but utterly moronic article. Nobody should be buying any investment based upon one year performance.
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Post by Fletchsmile on Jan 11, 2016 15:02:42 GMT 7
Sorry, but utterly moronic article. Nobody should be buying any investment based upon one year performance. and indeed that's part of the conclusion they imply  |
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Post by Fletchsmile on Jan 22, 2016 14:01:45 GMT 7
Actually the interest in the article wasn't really the question they asked in the headline. Anyone who's been around a while would know the answer to that question as you say. No doubt they do get asked the question from time to time though, as their clients will range from brand new to old hand.
More of interest to me were the actual specific investment trusts discussed, as well as their opinions on looking forward at various economies and how they think they sit now in terms of value. Although it was a very brief article.
I'm currently looking around at European ITs - buying thru Singapore. JPM European Smaller Companies is one I know you hold and has done well for you. Given the strong performance already last year, I was interested to see where they think it fits now on the value for money cycle. So it basically gives a couple of ideas.
Also maybe second half of the year might be worth looking at some of the resource funds and other sectors that were the big losers last year
Not a fantastic article, I'd agree, just sparks a few ideas
BTW any thoughts on other European ITs?
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Deleted
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Post by Deleted on Jan 22, 2016 14:13:42 GMT 7
^^ No - but.
I'm looking at the slaughter just now and wondering where the bargains are - there must be some serious value out there.
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Post by rgs2001uk on Jan 22, 2016 14:17:27 GMT 7
I have mentioned this before, all the smug barstewards who laugh at us in the markets, whats going to happen to their pensions?
The days of final Salary Pensions are numbered.
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Post by rgs2001uk on Jan 22, 2016 14:20:47 GMT 7
^^ No - but. I'm looking at the slaughter just now and wondering where the bargains are - there must be some serious value out there. And thats half the problem, same as the housing market, flippers. I believe there is value out there, for those who are in for the long haul. Will need to stop procrastinating, hence one of the reasons for visiting jolly old blighty later this year. |
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AyG
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Post by AyG on Jan 22, 2016 14:31:36 GMT 7
BTW any thoughts on other European ITs? The other European IT I hold is Henderson European Focus Trust. The last six months have been pretty bad for it - down 16% - partly from an increase in discount to NAV. However, over 5 years it's up 65%. It's currently on a discount to NAV of 3%. (It was at a premium for most of last year.) To me it looks like a good buy at the price. Dividend yield is 2.7% which also makes it attractive. Less aggressive/more defensive is Ruffer European (fund, not IT). It invests flexibly in both equities and bonds. Over the longer term it's one of my better performing investments. Looking at the historic performance, this is the sort of investment I want to own: Attachment Deleted |
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cmk
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Post by cmk on Jan 22, 2016 15:03:31 GMT 7
I have mentioned this before, all the smug barstewards who laugh at us in the markets, whats going to happen to their pensions? The days of final Salary Pensions are numbered. Social Security benefits are entirely self-financing. They are paid for with payroll taxes collected from workers and their employers throughout their careers. These taxes are placed in a trust fund dedicated to paying benefits owed to current and future beneficiaries. … Even though Social Security began collecting less in taxes than it paid in benefits in 2010, the trust fund will continue to accrue interest and grow until 2025, and will have adequate resources to pay full benefits for the next 26 years.” www.forbes.com/sites/merrillmatthews/2011/07/13/what-happened-to-the-2-6-trillion-social-security-trust-fund/#495a7e5f6153 |
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wildoats
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Post by wildoats on Jan 22, 2016 16:11:46 GMT 7
I have mentioned this before, all the smug barstewards who laugh at us in the markets, whats going to happen to their pensions? The days of final Salary Pensions are numbered. Social Security benefits are entirely self-financing. They are paid for with payroll taxes collected from workers and their employers throughout their careers. These taxes are placed in a trust fund dedicated to paying benefits owed to current and future beneficiaries. … Even though Social Security began collecting less in taxes than it paid in benefits in 2010, the trust fund will continue to accrue interest and grow until 2025, and will have adequate resources to pay full benefits for the next 26 years.” www.forbes.com/sites/merrillmatthews/2011/07/13/what-happened-to-the-2-6-trillion-social-security-trust-fund/#495a7e5f6153"Social Security benefits are entirely self-financing. " May I add a caveat? Social Security benefits in some countries are entirely self-financing. In which countries are Social Security benefits entirely self-financing? |
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cmk
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Post by cmk on Jan 22, 2016 19:42:30 GMT 7
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AyG
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Post by AyG on Jan 23, 2016 9:45:28 GMT 7
Just to return to Ruffer European/Henderson European Focus Trust (HEFT) for a moment, I plotted their performance for the last 10 years (with income reinvested). Ruffer in brown, HETF in yellow, and for comparison the FTSE Europe index (green). Attachment DeletedRuffer and HEFT have ended up in pretty much the same place, though with Ruffer being a lot less volatile. (One caveat here is the Ruffer is only priced weekly.) HEFT's recent performance has been much better then in the earlier years and probably reflects the change of fund manager in December 2010. Ruffer's defensive positioning has clearly hurt performance recently. I do hope this starts paying off soon. The western world really needs a bit more inflation. Both have substantially outperformed the index over this period. |
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