TimR wrote:
I'm do not run a HYP so I may not be qualified to comment. (I have a Global ETF / IT portfolio instead plus a few legacy UK shares )
However I do not understand the point of holding a few UK focused investment Trusts as well as a portfolio of HY shares (unless they were covering areas I did not cover eg small caps) ?
I can see the point of holding Global /World Region collectives as HFEL and MYI but not the UK focused ITs.
I would be using ITs and/or ETFs just to give exposure to other parts of the world that my HYP did not cover.
Isn't there at least a few other potential benefits from owning IT's, even if there's some overlap in specific equity-exposure?
Some off the top of my head -
1. Discount control capability by the manager.
2. Built-in income-reserve, for anyone looking for smooth income payments. I appreciate this can be done by anyone holding a HYP anyway, but some might see it as a hands-off approach to at least getting some essence of smooth-payment into their yearly income, and see a benefit from having someone else look after a '
portion' of hands-off cash-buffer...
3. Manager-discretion in terms of
market/macro calls. Importantly, the manager would NOT be the same manager of the HYP....I think this aspect is often overlooked, although of course some IT managers are more '
active' in this regard than others...
4. Possibility of
Discount/Premium investment timings, getting more bang for your buck on the way in, and possibly more buck for your bang on the way out...
I'm not suggesting that these are all positive benefits all of the time, and I'm not trying to suggest that taking advantage of those benefits, even if you do see them as such, doesn't come at a cost, but I don't think it's quite as simple as just looking at market-segment exposure between an IT and someone's HYP and suggesting that there's no other benefits at all if there's significant overlap...
Nice HYP by the way Raptor. How's the income looking, is it starting to snowball nicely yet in terms of re-investment of organic-income?
Cheers,
Itsallaguess