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Substitute for an OEIC: suggestions?

Closed-end funds and OEICs
Arborbridge
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Substitute for an OEIC: suggestions?

#408261

Postby Arborbridge » April 30th, 2021, 9:21 am

For many years I have used the Invesco Perpetual Monthly income plus fund as a sort of cash dump for either a reserve or when I couldn't think what else to do for a while.

It has been quite successful in that it gives me a payout of around 5% and much less volatility that most of my investments. After charges, my wife's equivalent holding has an XIRR of 4.34% from November 2017 - so that includes the Covid dip.

Ergo, it works as expected. However, I am not too happy about the charges in the Bell account which are not capped for OEICS, though they are for ETFs and ITs.

It's just irksome, so I wondered if anyone had a suggestion for an equivalent IT or ETF?

The fund is roughly split 80% bonds and gilts with 20% in equities. Link here to the HL page:

https://www.hl.co.uk/funds/fund-discoun ... s-y-income

No particular urgency, but any ideas not for a similar fund would be welcome. In this case, I am definitely wanting the low risk end and no go-faster stripes :)

Arb.

88V8
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Re: Substitute for an OEIC: suggestions?

#408270

Postby 88V8 » April 30th, 2021, 9:56 am

Arborbridge wrote:For many years I have used the Invesco Perpetual Monthly income plus fund as a sort of cash dump for either a reserve or when I couldn't think what else to do for a while..

This is a cunning tactic.. presently our don't-know finds are parked uselessly in cash.... be interested to see what thoughts emerge.
I guess it needs to have a narrow spread:
I suppose CTY with its one pee spread is too obvious....

V8

nmdhqbc
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Re: Substitute for an OEIC: suggestions?

#408280

Postby nmdhqbc » April 30th, 2021, 10:24 am

this might be a good place to look...
https://www.theaic.co.uk/aic/find-compa ... &desc=true

One name jumps out. may be similar. does not seem to have the 20% stocks though. you'll probably have to pay stamp duty on trusts though by the way so if you go in and out too often the savings vs open ended fund with AJ Bell may be eroded. the monthly bit may not be too easy to find.

https://www.theaic.co.uk/companydata/0P00008ZT3

Urbandreamer
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Re: Substitute for an OEIC: suggestions?

#408281

Postby Urbandreamer » April 30th, 2021, 10:27 am

I'm not sure that you will find a direct replacement.

There are pleanty of IT's with good yields that I feel would work, but there are few that pay monthly.
Of those I don't think many invest in bonds.

If you want to swap to an IT, you are going to have to make some comprimises.

A brief search found these articles about trusts paying monthly.
https://www.investopedia.com/articles/m ... onthly.asp
https://www.cityam.com/six-investment-t ... ly-income/

How important is the payment frequency or the bond component?

FWIW I own HFEL and CSH which might be of interest (though paying less frequently). Do your research though as you may quickly decide to reject them.

Regarding ETF's, this link may be a starting point to research.
https://www.morningstar.com/asset-allocation-etfs
Though I'm struggling to find anything listed using A J Bells search.

Arborbridge
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Re: Substitute for an OEIC: suggestions?

#408284

Postby Arborbridge » April 30th, 2021, 10:36 am

88V8 wrote:
Arborbridge wrote:For many years I have used the Invesco Perpetual Monthly income plus fund as a sort of cash dump for either a reserve or when I couldn't think what else to do for a while..

This is a cunning tactic.. presently our don't-know finds are parked uselessly in cash.... be interested to see what thoughts emerge.
I guess it needs to have a narrow spread:
I suppose CTY with its one pee spread is too obvious....

V8


I'd say too volatile for a " moderately near cash reserve" type of remit - no brownie points from Mrs Arb if it drops too far.
Interestingly, CTY used to be easily my biggest holding, but over the past year the IP Monthly income fund has risen above it, even though there was less capital invested in it than CTY. This was entirely because the IP fund was less volatile. In fact sometimes, I look at my investments and think I would be almost as well off dishing the HYP and investing in the IP fund - not that I would because the latter is more or less fixed interest.


Arb.

Arborbridge
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Re: Substitute for an OEIC: suggestions?

#408286

Postby Arborbridge » April 30th, 2021, 10:40 am

nmdhqbc wrote:this might be a good place to look...
https://www.theaic.co.uk/aic/find-compa ... &desc=true

One name jumps out. may be similar. does not seem to have the 20% stocks though. you'll probably have to pay stamp duty on trusts though by the way so if you go in and out too often the savings vs open ended fund with AJ Bell may be eroded. the monthly bit may not be too easy to find.

https://www.theaic.co.uk/companydata/0P00008ZT3


Not concerned about going in and out - this reserve has been hanging around for a loong time now!
And the monthly part was purely because it was there - I don't need to draw on it, so the monthly payment was a red herring really.

Arborbridge
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Re: Substitute for an OEIC: suggestions?

#408287

Postby Arborbridge » April 30th, 2021, 10:44 am

Urbandreamer wrote:I'm not sure that you will find a direct replacement.

There are pleanty of IT's with good yields that I feel would work, but there are few that pay monthly.
Of those I don't think many invest in bonds.

If you want to swap to an IT, you are going to have to make some comprimises.

A brief search found these articles about trusts paying monthly.
https://www.investopedia.com/articles/m ... onthly.asp
https://www.cityam.com/six-investment-t ... ly-income/

How important is the payment frequency or the bond component?

FWIW I own HFEL and CSH which might be of interest (though paying less frequently). Do your research though as you may quickly decide to reject them.

Regarding ETF's, this link may be a starting point to research.
https://www.morningstar.com/asset-allocation-etfs
Though I'm struggling to find anything listed using A J Bells search.


Thanks for the ideas. Monthly payment isn't an issue. HFEL I have, CSH may be a bit specialised for the purpose.

I could go back to looking at ZPDs which have served me well in the past. I rather forgot all about them because the handy website for them closed down.

Arb.

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Re: Substitute for an OEIC: suggestions?

#408314

Postby TedSwippet » April 30th, 2021, 12:59 pm

Arborbridge wrote:...Ergo, it works as expected. However, I am not too happy about the charges in the Bell account which are not capped for OEICS, though they are for ETFs and ITs.

It's just irksome, so I wondered if anyone had a suggestion for an equivalent IT or ETF?

Have you considering keeping this OEIC, and changing platform instead?

mc2fool
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Re: Substitute for an OEIC: suggestions?

#408318

Postby mc2fool » April 30th, 2021, 1:06 pm

Arborbridge wrote:I could go back to looking at ZPDs which have served me well in the past. I rather forgot all about them because the handy website for them closed down.

The AIC has a page for them: https://www.theaic.co.uk/aic/find-compare-investment-companies/zdp-analytics

DavidM13
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Re: Substitute for an OEIC: suggestions?

#408329

Postby DavidM13 » April 30th, 2021, 2:43 pm

Arborbridge wrote:
I could go back to looking at ZPDs which have served me well in the past. I rather forgot all about them because the handy website for them closed down.

Arb.



Splits on line you mean? I worked on building that when I worked at the company called Fundamental Data who owned it! Well I did the numbers and support queries while the developers built it. That website was my first true love.

Arborbridge
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Re: Substitute for an OEIC: suggestions?

#408344

Postby Arborbridge » April 30th, 2021, 3:39 pm

mc2fool wrote:
Arborbridge wrote:I could go back to looking at ZPDs which have served me well in the past. I rather forgot all about them because the handy website for them closed down.

The AIC has a page for them: https://www.theaic.co.uk/aic/find-compare-investment-companies/zdp-analytics


Thanks, I hadn't noticed that existed.


Arb.

Arborbridge
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Re: Substitute for an OEIC: suggestions?

#408345

Postby Arborbridge » April 30th, 2021, 3:42 pm

TedSwippet wrote:
Arborbridge wrote:...Ergo, it works as expected. However, I am not too happy about the charges in the Bell account which are not capped for OEICS, though they are for ETFs and ITs.

It's just irksome, so I wondered if anyone had a suggestion for an equivalent IT or ETF?

Have you considering keeping this OEIC, and changing platform instead?


Well, actually, not before today! that could be a possibility and I must check into the costs of transfer, costs on the other platforms, plus any related complications about what I want to do with ISA providers this year. Finding another EFT or IT seemed the more obvious route to check into before changing providers for one small section of our portfolios.

Arb.

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Re: Substitute for an OEIC: suggestions?

#408373

Postby jonesa1 » April 30th, 2021, 5:42 pm

You could opt for a pair of ETFs, a global equitiy tracker and a bond tracker. Between them you can probably get the low volatility you're after. Or go for one of the wealth preservation IT's, CGT and PNL have fairly low volatility when looked at over a few years.

Andrew


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