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ITs that are benchmarked against LIBOR or CPI/RPI

Closed-end funds and OEICs
NotSure
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ITs that are benchmarked against LIBOR or CPI/RPI

#419965

Postby NotSure » June 16th, 2021, 1:56 pm

Most ITs seem to use indices or compound indices as their benchmark. As such, if they drop by 29% in a 30% correction, they have still beaten their benchmark and need not fret.

I am sure I have seen some that target, for example, LIBOR + 4% over a rolling five-year period.

Is anyone aware of any? Or better still, is there an efficient way to compare the benchmarks of various ITs? Or does one have to simply work there way through the prospectuses (prospectii?) OEICs also of interest, but ITs preferred.

DavidM13
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Re: ITs that are benchmarked against LIBOR or CPI/RPI

#419989

Postby DavidM13 » June 16th, 2021, 3:18 pm

Ha, yes, I can help. I was analysing this just this week amazingly. There are three, and only three such investment companies. Below is a link to the factsheet of each so you can assure yourself it is accurate:

Aberdeen Diversified, M&G Income and Invesco Balanced Risk (page 5 of annual report)


https://documentscdn.financialexpress.n ... 016779.pdf

https://documentscdn.financialexpress.n ... 231487.pdf

https://documentscdn.financialexpress.n ... 395134.pdf

DavidM13
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Re: ITs that are benchmarked against LIBOR or CPI/RPI

#419995

Postby DavidM13 » June 16th, 2021, 4:00 pm

NotSure wrote:Most ITs seem to use indices or compound indices as their benchmark. As such, if they drop by 29% in a 30% correction, they have still beaten their benchmark and need not fret.

I am sure I have seen some that target, for example, LIBOR + 4% over a rolling five-year period.

Is anyone aware of any? Or better still, is there an efficient way to compare the benchmarks of various ITs? Or does one have to simply work there way through the prospectuses (prospectii?) OEICs also of interest, but ITs preferred.


Oh. And this may or may not be of interest to you.

On November 30, 2020, the International Exchange (ICE) Benchmark Administration (the “IBA”), the administrator of LIBOR, announced its intention to cease publishing one-week and two-month LIBOR on December 31, 2021 and the remaining tenors (overnight, one-month, three-month, six-month and 12-month) on June 30, 2023

EthicsGradient
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Re: ITs that are benchmarked against LIBOR or CPI/RPI

#420002

Postby EthicsGradient » June 16th, 2021, 4:54 pm

DavidM13 wrote:Ha, yes, I can help. I was analysing this just this week amazingly. There are three, and only three such investment companies. Below is a link to the factsheet of each so you can assure yourself it is accurate:

Aberdeen Diversified, M&G Income and Invesco Balanced Risk (page 5 of annual report)


https://documentscdn.financialexpress.n ... 016779.pdf

https://documentscdn.financialexpress.n ... 231487.pdf

https://documentscdn.financialexpress.n ... 395134.pdf

Though note that Aberdeen Diversified Growrth & Income gave up, on 23rd Feb this year, targeting a total return of LIBOR+5.5%, and now aim for a NAV+reinvested dividends return of 6%, over a rolling 5 year period. Since adopting the previous policy, the share price+dividend return hadn't kept up with LIBOR over the longest period (they hadn't quite reached 5 years), let alone +5.5%. I suppose at least they have more control over NAV than share price (they managed about 2.8% pa over 4 years).

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Re: ITs that are benchmarked against LIBOR or CPI/RPI

#420024

Postby XFool » June 16th, 2021, 6:49 pm

Ruffer Investment Company Ltd. (RICA) is targeted, so not exactly benchmarked, at an undemanding total annual return, after all expenses, of at least twice the Bank of England Bank Rate.

Performance
The Company’s objective is to achieve a positive total annual return, after all expenses, of at least twice the Bank of England Bank Rate.

https://www.ruffer.co.uk/-/media/Ruffer-Website/Files/Downloads/RIC/Documents/RIC_annual_report_30June2020.pdf?la=en


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