Investment Trust Watch

Supercell · 04-06-2021 5:42am

HillCloudHop wrote: »

Which brokers offers an AVC with investment trusts?

Davy, ETFs are available too as KevinK correctly mentions, I may add one or two of them into the mix as well as in an AVC they are not penalised by the Irish tax system.

Supercell · 04-06-2021 5:53am

Happyhouse22 wrote: »

BNKR is an interesting one that I hadn’t heard of before.I wonder is it one of the ones that weren’t on Degiro but have returned.

It has a low expense ratio which is what I wa looking for. At 1.9% dividends are relatively low. I like where it is invested, has it done a relatively poorly in recent times though?

I think you'll find many ITs have done poorly in the last few months (especially NASDAQ heavy ones). However in my AVC I couldn't care less, long term performance is what interests me, I plan to buy most if not all and forget for another 15 years so long term performance is what matters and the trend on BNKR over the years is clear to see so I'm happy.

KevinK · 04-06-2021 5:59am

Supercell wrote: »

I think you'll find many ITs have done poorly in the last few months (especially NASDAQ heavy ones). However in my AVC I couldn't care less, long term performance is what interests me, I plan to buy most if not all and forget for another 15 years so long term performance is what matters and the trend on BNKR over the years is clear to see so I'm happy.

Fair comment

Hope you don’t mind me asking another question, why ITs in your avc and not ETF’s - I thought the main attraction of it was the avoidance of deemed disposal , but not an issue in an avc. Presumably yiu are just confident they can outperform the market?

Supercell · 04-06-2021 7:23am

In my AVC i have, in no particular order - USA, BNKR, EWI, HGT and SMT so far.
In Trading 212 I have some more USA, SMT as well as ATT and BRK.B that I've bought for the same reasons I buy IT's as well as some other stuff that's purely YOLO and I'll probably regret!

All of these have historically out performed the market in general over 5-10 years, that said I'll probably add some ETF's anyhow.

HillCloudHop · 04-06-2021 9:08am

Supercell wrote: »

Davy, ETFs are available too as KevinK correctly mentions, I may add one or two of them into the mix as well as in an AVC they are not penalised by the Irish tax system.

What's your allocation rate with Davy and do you know their AMC for a world ETF?

Supercell · 04-06-2021 12:23pm

HillCloudHop wrote: »

What's your allocation rate with Davy and do you know their AMC for a world ETF?

For the AVC the annual charge is 0.75%. There are no transaction charges for share purchases in the UK and Ireland apart from currency conversion (if buying UK) and stamp.
For a UK or Irish domiciled and traded ETF I don't believe there is any AMC other than whats built into the price, I haven't bought any ETF's yet so I must admit I cannot confirm that, the link above should confirm that hypothesis I think.

Happyhouse22 · 05-06-2021 9:00pm

Supercell wrote: »

For the AVC the annual charge is 0.75%. There are no transaction charges for share purchases in the UK and Ireland apart from currency conversion (if buying UK) and stamp.
For a UK or Irish domiciled and traded ETF I don't believe there is any AMC other than whats built into the price, I haven't bought any ETF's yet so I must admit I cannot confirm that, the link above should confirm that hypothesis I think.

Sounds like a good deal, even I did think there was a transaction fee for purchasing an etf.

Happyhouse22 · 08-06-2021 9:37am

City of London, Herald & Monks investment trusts back on DeGiro today.

08-06-2021 6:10pm

Happyhouse22 wrote: »

City of London, Herald & Monks investment trusts back on DeGiro today.

Wort pointing out that if you plan to add monthly, any more than two transactions a month will be more expensive than Interactive Brokers. But if you just want to drop a few grand a few times a year and leave it, DeGiro is now the best option

Supercell · 17-06-2021 11:18am

SMT is on Degiro finally!!
Yes!
In a similar vein ATT back there too.
BGFD there too, looks like they are adding daily, wouldnt mind some USA (Baillie Gifford US Growth Trust), maybe in time.

Rock Paper Scissors · 22-06-2021 4:51pm

Hey guys

I'm delighted to see that Scottish Mortgage and Monks are back on DeGiro

I have 2 Quick question:

1) Do these 2 Investment Trusts pay dividends? I hope they don't as I would like to benefit from compound Interest. If they do pay dividends, are the dividends paid directly into your DeGiro account?

2) I have a DeGiro Basic account and also a custody account. Which of these would be better to buy into Investment Trusts (Im looking for the lowest fees)

Thanks Guys

HillCloudHop · 22-06-2021 7:21pm

SMT and MNKS both pay dividends directly into your brokerage account.

Rock Paper Scissors · 22-06-2021 7:23pm

HillCloudHop wrote: »

SMT and MNKS both pay dividends directly into your brokerage account.

Thanks for your reply.

Do you think it would be better to use a degiro basic or custody account?

FatRat · 24-06-2021 10:58pm

Why do some investments trusts require enablement of Inverse and Leveraged ETFs in Degiro in order to invest? Two examples being City of London and Edinburgh Worldwide?

Should I be worried that investing in these carries with it the same tax implications as ETFs? They are listed as shares on the app but still curious about the ETF tag

Geuze · 03-07-2021 5:21pm

I realise that Investment Trusts are all actively managed, but are there any that are really well diversified worldwide?

What I mean is are there any that come close to being similar to a diversified ETF?

EDIT: from a quick search, it seems FCIT is a good one?

But not available on DeGiro anymore!!!????

Shedite27 · 03-07-2021 10:14pm

Geuze wrote: »

I realise that Investment Trusts are all actively managed, but are there any that are really well diversified worldwide?

What I mean is are there any that come close to being similar to a diversified ETF?

EDIT: from a quick search, it seems FCIT is a good one?

But not available on DeGiro anymore!!!????

We're only interested in IT's because of Irish tax law, so there's unlikely to be a product to exist unless it's a bigger problem than just IRish investors.

Most people looking for an IT, are paying a fund manager to make trades, not just take a cut and passively track a index. That's what ETF's are for.

Supercell · 04-07-2021 8:13am

Geuze wrote: »

I realise that Investment Trusts are all actively managed, but are there any that are really well diversified worldwide?

What I mean is are there any that come close to being similar to a diversified ETF?

EDIT: from a quick search, it seems FCIT is a good one?

But not available on DeGiro anymore!!!????

There are many but most have large exposure to the US market, one example would be EWI.
If you want global diversification then why not invest in regional trusts individually?

nosferatu1978 · 19-09-2021 6:47am

Degiro charges are ridiculous. I was charged €4 for €45 investment in Temple Bar Investment Trust. They now have a limited number of options for investment trusts.

Etoro have more options but I haven't seen their charges yet.

Shedite27 · 19-09-2021 9:09pm

https://www.boards.ie/discussion/comment/117910014#Comment_117910014

Investing in UK listed shares is more costly than US listed. I think most "discount brokers" are the same, the main discounts are for US markets

KevinK · 20-09-2021 6:57am

https://www.boards.ie/discussion/comment/117910014#Comment_117910014

Genuinely feel like this isn’t that bad - tried to buy some shares as a student 14/15 years ago and Davy and goodbody were the only options available. Would have cost a minimum of €40 to buy anything- with the amount I had to invest it just didn’t make sense.

Yes 4 euros is too high for a 40 euro transaction but it doesn’t get that much higher if you invest €400.

Happyhouse22 · 20-09-2021 6:59am

https://www.boards.ie/discussion/comment/117913641#Comment_117913641

I think the really cheap discount brokers are only an American thing, and a somewhat recent phenomenon. Being able to buy shares for €4 is pretty good I think.

JTMan · 24-10-2021 8:19pm

I see trading212 seem to now be accepting new customers again. Is this the best place to purchase IT?

I see FCIT is now on Degiro (as well as SMT and BRK.B) but many other IT are missing.

What is the tax rate on dividends from IT?

Thanks.

Cilar · 24-10-2021 10:52pm

Any IT not managed from the UK in any shape of form? With Brexit, I don't want to touch anything related to the UK.

massdebater · 25-10-2021 10:27am

https://www.boards.ie/discussion/comment/118069051#Comment_118069051

Curious why brexit makes a difference or do you prefer to have everything in Euro investments?

Cilar · 25-10-2021 11:22pm

https://www.boards.ie/discussion/comment/118069927#Comment_118069927

Located outside the EU. UK investors would be the first served in case of breakdown

massdebater · 25-10-2021 11:41pm

https://www.boards.ie/discussion/comment/118072760#Comment_118072760

That's fair. It can be good to diversify and not have all your assets tied to one currency, but that's a personal preference I guess. I only really know of UK investment trusts.

ravendude · 21-11-2021 6:28pm

I'm basically putting a halt to adding to my ETF positions due to our crazy penal tax regulations.

I'm looking for solid proven performers over a long holding period. I'm thinking of getting Allianz Tech, Smithson, Montanaro European Small Companies , Pacific Horizon and maybe Monks and Scottish Mortgage. Any thoughts on these?

Also any thoughts on what kind of NAV premium is too high? Do people tend to avoid premiums full stop? Eg. Scottish Mortgage is 4.4% premium and Pacific Horizon is up at 7%+!

I'm thinking a couple of percent isn't that bad, but beyond that maybe its best to wait? as they seem to dilute equity of the premium gets too high

grassmoon · 25-11-2021 12:07am

https://www.boards.ie/discussion/comment/118202370#Comment_118202370

I hold SMT, MNKS, JAM, FCIT and EWI. All have reasonable fees for active management. FCIT is the most diversified with over 400 holdings, so it should be the safest bet long-term.

Maverick91 · 29-12-2021 7:57pm

Could someone explain how the fees work for investment trusts. For example SMT has ongoing charges of 0.34%, so if you had 10k invested that would only be €34 a year? That seems very low so must be missing something. Also what platform are people buying Investment trusts on? Is IBKR the best option or someone else? Thanks.

Shedite27 · 30-12-2021 8:19pm

https://www.boards.ie/discussion/comment/118387472#Comment_118387472

Yeah that's all the fund manager takes, Vanguard is about the lowest at 0.07%. When ya add up all the Billions they have under management, it adds up for them

Other fees you might have to pay are entry and exit fees (buying and selling) so you have to consider that too.

Investment Trust Watch

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