foolsgold
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Post by foolsgold on Dec 10, 2019 0:22:57 GMT
Many years ago I used to invest in Unit trusts also known as open ended funds.
Many people dont realise that the same management group also run in parallel Investment trusts which are closed ended funds.
ITs have been around for over a 100 years long before the unit trusts.Its where the rich people in the know used to invest there money. Many financial advisers invest there own money in ITs rather than UTs as they outperform UTs by a fair amount but they dont tell the public as they dont earn commission as the ITs are classed as shares.
There is a major share trading company who I wont mention promote UTs over ITs due to the commission paid.
I once complained to the FCA about the way this company use comparison tools to show performance as the default position was showing UTs as the default position and concealed the outperformance of the ITs
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sd2
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Post by sd2 on Jan 29, 2020 19:13:13 GMT
Not true financial advisers are not allowed anymore and haven't been for a long time to earn commission from advice given. They have to charge the customer a price for advice. Normally 3% of the money they invest on there behalf.
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corto
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Post by corto on Jan 29, 2020 20:09:45 GMT
You can buy either, UT or IT, easily yourself. No adviser to be paid.
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sd2
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Post by sd2 on Jan 30, 2020 13:30:10 GMT
Its where the rich people in the know used to invest there money. Many financial advisers invest there own money in ITs rather than UTs as they outperform UTs by a fair amount but they dont tell the public as they dont earn commission as the ITs are classed as shares. This is what can only be described as bullshit. (a) There is no easy answer, otherwise (a) all so-called "rich people" (frankly, I don't like this Labour style politics of envy ... what is "rich" anyway) would be living on Caribbean islands doing bugger all because they would be forever guaranteed money and (b) If financial advisors knew the perfect answer, they would not bother working and would go live in the Carribean too. (b) I have been in a position to see significant sized portfolios which are professionally managed. I can very much assure you that only a small proportion of the portfolio might be invested in collectives. The vast majority of the portfolio will be either in fixed income, equities, or a mixture of the two depending on the client's financial goals and personal financial circumstances. Thus, the only difference between the so-called "rich people" and the unwashed masses is that the so-called "rich people" can afford high quality advice and therefore don't make dumb investment decisions based on prejudices such as we are seeing here, or relying on nonsense published by people they don't know on internet forums telling them that putting all their money in collectives is a guaranteed winner. What I was told by one financial adviser. He old me to do it myself as the amount was so small. IE 20,500. I may have got that wrong (3%) but I doubt it.
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sd2
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Post by sd2 on Jan 30, 2020 13:31:40 GMT
You can buy either, UT or IT, easily yourself. No adviser to be paid. No you cannot for a pension greater than £30,000.
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sd2
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Post by sd2 on Jan 30, 2020 13:32:54 GMT
Note I was talking about pensions
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sd2
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Post by sd2 on Jan 30, 2020 13:36:27 GMT
Not true financial advisers are not allowed anymore and haven't been for a long time to earn commission from advice given. They have to charge the customer a price for advice. Normally 3% of the money they invest on there behalf. First half true. Commission is dead. foolsgold , look up RDR. A whole heap of regulatory changes introduced by the FCA. Second half is nonsense. 3% ? Where on earth do you get that from ? The most expensive shops I know of only charge 1% for discretionary portfolio management (and even that can typically be negotiated down if your portfolio is big enough). Note I was talking about pensions
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corto
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Post by corto on Jan 30, 2020 13:47:09 GMT
You can buy either, UT or IT, easily yourself. No adviser to be paid. No you cannot for a pension greater than £30,000. OK. Nowhere did it say "pension" in your post. To my knowledge you do not need to take the advice of an adviser in one of these forced pension investment sessions. Of course, you still have to pay for the advise .. which may be a rip-off for people who know what they want to do already.
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macq
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Post by macq on Jan 30, 2020 15:43:18 GMT
You can buy either, UT or IT, easily yourself. No adviser to be paid. No you cannot for a pension greater than £30,000. Think you are talking about a transfer of a defined benefit or guaranteed pension that you already hold (rather then investing new money) which at £30,000 must come with advice as per govt' regs to stop people making the wrong choice
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corto
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Post by corto on Jan 30, 2020 16:04:53 GMT
No you cannot for a pension greater than £30,000. Think you are talking about a transfer of a defined benefit or guaranteed pension that you already hold (rather then investing new money) which at £30,000 must come with advice as per govt' regs to stop people making the wrong choice When I looked around last, which is a couple of years ago, there were SIPP providers that looked cheap, but they expected you to visit an adviser (themselves?) before drawing down or making other use of the pension pot. That could just have been related to transferring out pots above 30k, but read like a general requirement. I didn't follow it up.
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Post by mattygroves on Feb 11, 2020 16:41:48 GMT
No requirement to see a SIPP advisor for either small or large SIPP pots. I’ve got a small SIPP and can invest in the full range of normal investments (but no exotics like commercial property or unlisted shares). Yes it costs me £100 a year to run it but I accept there is far more admin than with an ordinary trading account. When I get to the point of wanting to withdraw there will be a small charge but it was clear when I opened it what those would be.
my husband has a far bigger one run under fully discretionary fund management and he pays considerably more (but still not 3%) plus about £500 to the actual SIPP provider who isn’t actually the investment house that run his portfolio. He has got unlisted shares and commercial property in his SIPP (some of which have done well and some have tanked but that is part of the risk).
He doesn’t have any problems in withdrawing money other than needing to complete some forms and wait for the next available pay run. Yes there is a small charge to do so but there is also work involved in reporting to HMRC and processing the actual payments. you can’t expect firms to do it for nothing.
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foolsgold
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Post by foolsgold on Feb 19, 2020 15:02:36 GMT
You can buy either, UT or IT, easily yourself. No adviser to be paid. Correct
Why pay 3 percent when you can do it directly with Hargreaves Lansdown.
Answer to that is if you have no financial experience in comparing UTs with ITs.
Using a FA advisor is good if you dont know what you are doing....just made 60 percent on Baillie Gifford Growth and other trusts made 25-30 percent over I think 18 months- 2years
Went out for a curry with a few mates and one is delighted making 7 percent with St James wealth management and was seduced by all the glossy brochures.....hes a lazy investor and 3 percent management is Ok for him and good luck to him
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foolsgold
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Post by foolsgold on Feb 19, 2020 15:14:27 GMT
Its where the rich people in the know used to invest there money. Many financial advisers invest there own money in ITs rather than UTs as they outperform UTs by a fair amount but they dont tell the public as they dont earn commission as the ITs are classed as shares. This is what can only be described as bullshit. (a) There is no easy answer, otherwise (a) all so-called "rich people" (frankly, I don't like this Labour style politics of envy ... what is "rich" anyway) would be living on Caribbean islands doing bugger all because they would be forever guaranteed money and (b) If financial advisors knew the perfect answer, they would not bother working and would go live in the Carribean too. (b) I have been in a position to see significant sized portfolios which are professionally managed. I can very much assure you that only a small proportion of the portfolio might be invested in collectives. The vast majority of the portfolio will be either in fixed income, equities, or a mixture of the two depending on the client's financial goals and personal financial circumstances. Thus, the only difference between the so-called "rich people" and the unwashed masses is that the so-called "rich people" can afford high quality advice and therefore don't make dumb investment decisions based on prejudices such as we are seeing here, or relying on nonsense published by people they don't know on internet forums telling them that putting all their money in collectives is a guaranteed winner. Nothing is guaranteed in investments otherwise stick your money in the Bank but ITs were not pushed by FAs a few years ago as there was no commission as they were basically shares within shares with only a spread.
Im not into the Politics of the Rich and poor and just used that as an example of people with a bit of knowledge and understanding the difference between UT and ITs its all down to the investors attitude to risk in where they invest their money whether its in stock and shares or bond or derivitives whatever.
Im not predjudiced against any group whether rich/poor /black/white and I dont where your going with this and rambling on about "Rich people"...have I touched a nerve ?.....now youve confused me
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Feb 20, 2020 8:26:44 GMT
Every vector has it place in a portfolio. I have funds spread over different investments. I find funds give a steady but low isa return.
I have recently taken to flirt with my own ability to research and do some day trading. Every day I pick a share for the day that is atypically low and buy about £1000 this costs about 1% . I place an automatic sell at 5-10% profit on a 90 day order. 90% of those shares have met this criteria. I have sufficient to continue this as cash flow is no problem.
This is working well at the moment and should result in a very good return by end of the year.
Have your stable returns with property etc. and diversity to protect from high losses.
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sd2
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Post by sd2 on Mar 19, 2020 11:32:12 GMT
Let's get back to investment trusts. I have noticed that share prices are not falling in line NAV? Normally they fall further. An example is City of London on an average it has traded at 1.8% premium 3.8% now. Not a lot but unusual. Maybe it will happen later. The latter applies more to income investment trusts. Things to note most (if not all) income based Trust have a large % of investments in oil companies. Namely BP and Royal Dutch shell. A few investment trusts have increased their dividends for 50 years or more using their dividend reserves. Still no guarantee on that. citywire.co.uk/investment-trust-insider/news/ian-cowie-four-real-dividend-heroes-for-desperate-times/a1336970City of London is presently paying a 6.8% Dividend Henderson far east 9.8% |
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