FCIT, what am I missing?

[1nvest]

FCIT is a one-stop shop if you are looking for a world equity portfolio.

The average returns of 8.2% per year over 154 years has turned £100 into £18m.

The average retail investor does much worse than this with returns perhaps only 4.1% per year - if they are lucky, due to buying high and selling low. Taking inflation at 3%, the shareholder of FCIT is effectively increasing their wealth by 5.2% per year. The hardest thing for a novice investor to do is to sit on their hands for the next 20+ years.

I have been sitting on my hands and doubled my money every 9 years. The rule of 72 is useful - 72/average annual percentage increase = number of years to double.

I have about 98% in FCIT and the rest in cash.

I agree - one could do a lot worse than FCIT.

I have held it since 1994. I wasn't a good record keeper in those days, but since moving my holding into a SIPP in May 2015 the share price has gone from 453 to 929 - more than doubling in just over 7 years.

With dividends, my ATR since May 2015 is 10.43%.

It is only one of my holdings, but as I age I am considering simplifying my life by moving more of my dosh into this steady performer.

Bank of Montreal is renowned for its stability/consistency. The move from Canadian to American fund control along with the transfer of European investors over to a European based team - is a concern IMO. A tendency toward owner/control directed monetisation/shorter term greed over that of conservatism/longevity. Perhaps fine if largely/solely held in a ISA/SIPP where if a situation arises due to structural (or otherwise) changes where a move out of the fund becomes desirable, not so good if such a move involved large capital gains (and hence CGT liabilities).

Preferred it as it was, not a investor but was tempted, but no more. Broadly the differences compared to world tracker ETF's look to me to just be noise such that the mechanical nature of ETF's may have lower risk than a fund where ownership/control might be directed with other thoughts in mind.

[scrumpyjack]

I have holdings in both VWRL and FCIT and am happy to hold both. VWRL has the wider spread of holdings and is not exposed to the views of a manager, and slightly lower costs, FCIT has been a very steady performer, slightly beating the trackers, probably because it has modest gearing (enabled by being an IT) and the ability to maintain a steady dividend record which may be attractive to some investors but doesn't bother me. Hold both?