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What would you do?

Closed-end funds and OEICs
MusingMarket
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Re: What would you do?

#292458

Postby MusingMarket » March 19th, 2020, 5:33 pm

I switched out of all but one of my ETF trackers today into Investment Trusts. Discounts may go out further but I'm happy buying F&C on an 18% discount and Murray International at a 12% discount. Got to work out whether or not to rotate some OEICs into ITs now.

mm

Parky
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Re: What would you do?

#292486

Postby Parky » March 19th, 2020, 7:38 pm

mc2fool wrote:
Parky wrote:I have bought some TR Property today, which you can buy for 46% of their peak value just a couple of months ago. Their underlying investment is real property...

No it isn't, it's property securities.


Yes, I know. That is why I said the UNDERLYING investment.

77ss
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Re: What would you do?

#292489

Postby 77ss » March 19th, 2020, 7:51 pm

Parky wrote:.....I have bought some TR Property today, which you can buy for 46% of their peak value just a couple of months ago. Their underlying investment is real property, which I cannot believe has lost that much value (in the medium to long term).....


I hope you are right (I hold), but look at TRY's performance during the financial crash.

The NAV fell by two thirds and took nearly 8 years to recover. The YTD 50% fall is not yet enough for me to be tempted.

Mememe
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Re: What would you do?

#292499

Postby Mememe » March 19th, 2020, 8:59 pm

You should definitely not sell

Some great stats from john Barron in the investors chronicle a few weeks back regarding the impact that income reinvested has on long term returns (pre all this happening). Also did stats on the danger of missing out on the best 10 days of returns on long term returns. Stats that I have also used previously in client comms for an investment manager I worked for. No one can time the market

We’re in too deep to sell at this point. I’m 45% down. I fired off my powder too early last week but ce la vie. Sit tight let it sort itself out. Might take a couple of years.

colin
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Re: What would you do?

#292503

Postby colin » March 19th, 2020, 9:34 pm

Parky wrote:
mc2fool wrote:
Parky wrote:I have bought some TR Property today, which you can buy for 46% of their peak value just a couple of months ago. Their underlying investment is real property...

No it isn't, it's property securities.


Yes, I know. That is why I said the UNDERLYING investment.

Presumably it's real property that has been bought with a mixture of equity and debt and thats the thing I guess, can the underlying property companies continue to pay the debt if not presumably creditors will take the buildings?

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Re: What would you do?

#299081

Postby LooseCannon101 » April 8th, 2020, 7:14 pm

I own shares in a global investment trust and have recently re-invested my dividends gained over the past year. My plan over the following 5+ years is to do exactly the same, regardless of price volatility. A simple investment plan is crucial if one is to cope with this or any other crisis.

Mememe
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Re: What would you do?

#299108

Postby Mememe » April 8th, 2020, 8:48 pm

Well I’ve borrowed x to throw into this market so you can guess what my outlook is

I’ve got 20 years. It’s borderline free to borrow. The next 12 months is the time to get greedy.

I’ll tell you if it’s worked out in 10 years.

gbjbaanb
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Re: What would you do?

#299250

Postby gbjbaanb » April 9th, 2020, 11:27 am

77ss wrote:
Parky wrote:.....I have bought some TR Property today, which you can buy for 46% of their peak value just a couple of months ago. Their underlying investment is real property, which I cannot believe has lost that much value (in the medium to long term).....


I hope you are right (I hold), but look at TRY's performance during the financial crash.

The NAV fell by two thirds and took nearly 8 years to recover. The YTD 50% fall is not yet enough for me to be tempted.


That 8 years to recover will not have included dividends. The trouble with looking at share prices is that many income companies will pay out most of their profits as divis and the sp stays flat. I dislike companies that simply invest in other companies and TRY doesn't have as good a yield as others. So I would stick with a few like RGL etc instead.

ten0rman
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Re: What would you do?

#301935

Postby ten0rman » April 20th, 2020, 1:00 pm

Like everyone else, my holding has dropped in value, and like the OP, as yet, I don't need the the income or the capital. So I'm holding on to see what happens.
In any case as someone in the most at risk category, either I'll come through with no problems and therefore I will be unlikely to need the the income or the capital, or, and this is a serious possibility, I may be struck down with Covid-19 in which case it won't matter (to me) anyway. The problem that may then arise is that my wife will have a reduced income, that is if she survives, and may then have to rely on any income or possibly capital depreciation, but at the moment, there is no cause for alarm.

ten0rman

kempiejon
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Re: What would you do?

#301972

Postby kempiejon » April 20th, 2020, 2:56 pm

Mememe wrote:Well I’ve borrowed x to throw into this market so you can guess what my outlook is

I’ve got 20 years. It’s borderline free to borrow. The next 12 months is the time to get greedy.

I’ll tell you if it’s worked out in 10 years.


Mememe well that's a more interesting take that I don't usually hear. Could you tell us more, what's the strategy, where or how exactly are you borrowing and for how long at a borderline free interest? Isn't the received wisdom one doesn't borrow to invest so you seem braver than the average investor, have you done this before? What specifically are you buying - a world tracker, a specific pick or a basket of investment/unit trusts. I'm thinking that there's more doom to come and prices could still drop so I'm not getting greedy but I will drip money in as usual, specifically I'm buying 3i infrastructure, vanguard world tracker VWRL and Legal and general this month with a limit order on Vanguard USA S&P tracker should that fall.

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Re: What would you do?

#302285

Postby Mememe » April 21st, 2020, 5:24 pm

40% world developed tracker
10% pantheon international
10% jpm emerging
10% tr prop
15% Edinburgh world w
15% f&c global smaller

I won’t go into amounts but it’s big enough. Drip in over 12 months as I also expect this to get messy from here

1.7% ish fixed for 5. Timeframe 10 years but can stretch it out, but an eye on repayment of what I’ve borrowed. May try to pay down as I go

I’m mid 30s. Already have a fairly ok amount invested. See this as a real opportunity that rears it’s head ocassionally. Fully understand risks. Am in a position to take it on without risking it all

bluedonkey
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Re: What would you do?

#302419

Postby bluedonkey » April 22nd, 2020, 10:11 am

I've held off from buying since the downturn. However, today I made a small addition to my holding of Fundsmith. Of all my investments it appears to have turned down less than most. Part of me thinks I'm therefore not getting a bargain. The other part of me thinks the modest downturn in Fundsmith's price shows what a quality investment it is.

To answer the OP's original query, I've not sold anything since the bear market started. Overall my portfolio has suffered about a 26% fall as of today from its peak a few weeks (months?) ago. My retirement is just a few years away.


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