Wizard wrote:
I am not an IT guy, but having read these last few posts I thought I would have a look at MYI. Really basic question, but based on the AIC tables it seems a poor performer versus othe Global Income ITs, so simple question, why MYI instead of any of the others?
A really good question and gets to the heart of how we choose investments, generally. I always fly to the charts, but as Dod pointed out today, the past is no guide to the future. I'd say MYI has been a reasonable example of this, for up to three years ago, the XIRR of my holding was going well - broadly in double figures, between 10% and 13.8% across a number of periods. Then people started muttering that the perfomance had dropped off, which it has, incrementally each time I've made a note of it. Now it's a dog down to an XIRR of 2.8% - which implies my dividends are being taken from capital, in effect. That is what you are seeing in the charts now, and I don't blame you for knowing you could probably do better,
For me, what do I do? I have a trust which may well recover as the C-19 is gradually brought under control, and which has been paying a good yield with payouts increasing above RPI. It invests in a good spread of countries with a 20%, roughly, exposure to the US and is run by a conservative manager.
It's all a big gamble, but with a small discount and a yield of 5.6% - not too big, not too small - I decided to top up this month. I reckon it is probably sound enough to give me some pension income, but not shoot the lights out.
A salutary tale is my branding of MUT as a big dog. On my routine method of checking XIRR it was
always below the median of all my income ITs. Eventually, I drew the line and sold it. Could have been a mistake, for I believe it's done rather better since I sold it and far better than EDIN, MRCH and SCF which topped up with the proceeds. Incidentally, I also sold DIG slightly earlier, and that has held up well, almost indentically with MUT. Selling either, turns out to have been the wrong thing to do during this period.
I haven't a clue what will happen next, which is why I invest across a good number of ITs. I try not to sell too much either, which does sound rather HYP-like, but based on decades of experience, chopping and changing or trying to second guess what will happen next is beyond me, and, I'm sure most people. All one can do, is buy/sell what appears right to you at that moment, and not beat yourself up about it later!
As I say, your's is a really good question, and standing in your shoes, I'd probably pass over MYI, but whether that is right or not, only the future can tell - and that ain't saying nuffin.
Arb.