Surprised anyone in Edinburgh can sleep at night due to the barking from this old dog. However I believe the managers are good - its just out of fashion and going through a bad patch but will come back given a medium horizon (2-3yr). I am holding and the divi is nice.
I have been a long term holder but have become disillusioned over the past couple of years and will be looking to offload when the discount narrows a little. I think the manager is 'middle of the road' and the sector UK Income has lost its appeal.
I am looking more towards the global low cost index funds like Lifestrategy these days.
Thanks for the comments devonplay and allthat glistens.
With the markets in the mood they are in I am certainly going to keep tabs and look to take a decision after the financial year end when I will look to transfer in my annual ISA allowance.
I am thinking that rather pick my own stocks in what may well be quite a turbulent year perhaps it will be better to go with an IT where the have "expert eyes" on their holdings rather than my more amateurish approach.
The question, dependant on market levels t that time will be whether it is better to go for an income focused trust or one that focuses more on capital appreciation.
Can anyone tell me whether this fund has a holding in Capita? It was another dud in the Woodford stable and Mr Barnett does seem to share many holdings in common.
As the discount has got close to 10% I have become interested again having sold out after the Provvie mess, but if the manager has slid on yet another banana skin then that is me out for the long term...
I know performance hasn't been good, and the discount is nearly 10%, the highest for at least 8 years, but I don't think that now would be the best time to sell. I'm hoping for a double whammy of improved performance and narrowing of the discount.
"In the current climate, with stockmarkets continuing to hold their form, income seekers are facing a greater challenge to source income at a sensible price.Eight years into the bull market, investment trust bargains have become harder to find, ..."
Az, I doubt that the SP drop is due to overreaction. The SP performance over the last year is one of the worst in the UK Equity Income sector. The NAV performance over the same timeframe is even worse.
There would have been some reputational damage from the Provvie unfortunate situation/managerial error of judgement (delete as appropriate) and this may have caused the discount to widen, but removing that from the equation the NAV performance (which IMO is how the fund manager should be judged) has been terrible over the last year.
Investors may have just got fed up with the performance and the Provvie situation may have been the straw that broke the camel's back - it certainly was with me.
I continue to hold MRCH, SHRS and LWI in the sector, all of which have performed far better than EDIN recently. FGT is classed in the same sector by Trustnet and has also out-performed, but I would agree with PIE-EATER that its focus is different and it is not a valid comparison).
IMO Mr Barnett will need to do some portfolio reshuffling to get the fund performance back on track.
I never say "never" in investment and EDIN remain on my watch list, but as things stand the discount to NAV will need to get to double figures before I become interested again.
Competition in the UK Equity Income sector is intense, but for the last few years making a decent gain out of it has been like shooting fish in a barrel. However, IMO this situation is changing and going forward the fund managers will need to earn their fees.
Mark Barnett has significant ground to make up and I am currently content to watch from the sidelines while holding other ITs in the sector.
The truth is I bought EDIN many years ago outside an ISA whilst I use my CG tax allowance each year it could be a long time before I get round to EDIN .
Overall however it has performed decently and is producing an income of around 9% on book cost.I accept at the moment it is very difficult for income funds esp larger ones to find shares to buy that fill their remit with the result that they all tend to buy the same limited basket of shares,some like "The Provy" had very high valuations for what is quite a risky business particularly with increasing regulation.
Recently funds buying overseas shares and/or shares with large overseas earnings eg Nick Train & Fundsmiths excellent offerings have had a fantastic run but the valuation ascribed to their share picks is very high so my feeling going forward is whatever type investment trust we buy performance is going to be more modest;if indeed it actually grows in the short term.
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