This will mainly revolve round IT with big discounts.
Before offering your pennyworth remember that some deserve to be at discount although definitely not all.
Well worth checking there normally discounts.
For instance in the private equity sector discounts can be the norm for some.
For instance pantheon international is on 41% discount but I see it’s normally on 20% discount.
On the other hand 3i is presently at par but normally trades on a 20% plus premium. 45% premium 6 years ago.
So your views on individual investment trusts and sectors. Which is a bargain in your opinion?
My starter is a country Vietnam. The discounts are still high. the stock market fell significantly.
Growth is about 7 percent inflation 4%. Silly fall.
Vietnam is in classed as frontier if it should be moved into the emerging market sector prices will inevitably rise.
Problems
freetrade will only allow investment in one of 3 Vietnam investment trusts.
Some would say there are to many Vietnam investment trusts and they are to big.
So a supply and demand problem.
I still think it is a good investment based on growth prospects for Vietnam. Normally around 6% a year.
Also it has a lot of internal demand.
Companies are moving there to avoid the Chinese problems. That includes Chinese companies.
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Are you ok with single country ones and not something like Blackrock Frontiers?
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Outside of the US and UK, I try to avoid country-specific funds in favour of global or regional ones.
I got lucky selling a China growth trust at a double-digit premium in 2020 then watched as its share price fell 65% and it swung to a wide discount.
That’s made me wary of the political and regulatory risks that come with single-country trusts, particularly in emerging and frontier markets.
Tempting as it can be to buy funds covering countries like China, India and Vietnam, I’m sticking with PHI for broad exposure to the Asia Pacific region.
Some of the property, infrastructure and renewables trusts look relatively cheap. I’ve bagged some TRY and IEM over the past few months at fair prices and decent discounts.
DGI9 and GSF are on my radar but they’re probably too exotic for my tastes.
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I have no problems with single country trusts. I am “risk on” for the next 4 years possible longer. I have £314 state and disability pension the latter isnt taxable. It’s more than adequate amount for me to live on.
So I see no problems with taking risks.
In fact in the present market I think you would be foolish not to.
The extreme volatility is throwing up bargains constantly.
Private equity is still in the bargain basement.
Pollen street and biopharma for tax free dividends using the ÂŁ5,000 starter savings tax allowance.
Pollen street investment trust presently on 14% dividend a product of a merger which will result in a lower dividend about 11%. Interest rates increases will push up its returns but only marginally. Debt sectors of investment trusts require a complexity premium. This merger has led to an extremely complex company. Resulting in a 45% discount.
Biopharma lends to pharmaceutical companies it will be getting a higher returns in the medium term from its loans. But it only trades on 5% discount and a 7% dividend…not very complex?
As an aside is Oakley capital available on freetrade. Can’t seem to find it,?