taken2often wrote:I stopped buying Prefs when the yield went back to my original yield level 6.5%. I will buy again when the yield is around 7-8%
I am getting this at present in US CEF's Closed end funds (out Investment Trusts). This is giving me access to a whole range of US shares.
I'm sure you know this but, just in case, know that although US closed-ended funds bear a number of similarities with UK investment trusts they also differ in a couple of ways.
Firstly, their tax treatment is different and they are compelled by US tax law to annually distribute realised capital gains. UK iT's can sell internally and no CGT is due until you sell. Probably every December those US CEFs will distribute capital gains as well as dividends. If you hold in a taxable account that can means some work in determining the gain to be declared and also adjusting the cost basis.
Also note that many of them are not classified as reporting funds by HMRC and therefore any capital gain may be taxed as ordinary income, whilst capital losses may not be offset against other capital gains.
Their dividends will be subject to a withholding tax that you probably cannot reclaim.
Finally, UK ITs are companies and come with certain protections that US CEFs do not have, by virtue of them being offshore funds and not onshore companies.