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Sold - poor performance BEFORE this week

lse:edin

#1

Having been an EDIN holder for over a decade I have been selling off tranches for the last 24 months and getting better returns buy reinvesting in SMT, FGT, BNKR, IIT.

The very last, small, holding was sold today.

As noted by other posts today, the management must take responsibility for the latest mega fall (although Woodford was also badly burned by this), but as importantly for the piss poor performance in recent years.

No confidence in the future when there are other, better managed, just as ‘safe’ and higher performing options available. Very sad, but sit shows that past performance is indeed, no indicator of the future, especially when management changes.


#2

Totally agree. PLI is in much the same boat - very subdued performance recently, well before the Provident Financial disclosures. Seems Mark Barnett has def gone off the boil. Thank you for the ref to Independent IT; didn’t know about them.


#3

I had also held these for many years and stuck with them when the ‘ego’ that was Woodford departed. His reputation has well and truly crashed recently…

I have also held SMT and FGT long term and they have been excellent investments for me.


#4

Just bought some for my daughter’s Junior ISA. He’s had a few bad years but I’ve a lot of faith in Barnett.


#5

I also have some concerns with the very high weighting given to Tobacco shares here;around 20% of portfolio value.Another influence perhaps from Woodies previous days here.
Yes I accept in terms of both income & capital growth these investments have until recently performed well,and in terms of income continue to deliver but I feel we are now going to see a rapid decline in turnover & profits at least in the USA & Europe and the balance sheets of these companies are dire & heavily borrowed once you strip out the goodwill value attributed to their brands.
I retain an investment here bought many years ago but I would not be a buyer at todays valuation.


#6

Noting that Provident is currently up 20% today…probably leaving it closer to it’s true value.

YES the recent events at Provident are VERY disappointing and it could be that information given to fund managers has not been the truth, the whole truth and nothing but the truth???

What is EQUALLY disappointing is seeing people comparing EDIN with FGT and SMT. Do those people really understand what the objective of each of these funds is and their markets? They are both truly excellent trusts and I hold both in similar proportions to EDIN…ie they are my (roughly) joint top 3 positions.

FGT is NOT an income fund…it is a balanced growth fund that has a semi-respectable income, (approximately HALF that of EDIN), which grows. Nick Train has said as much. In many ways it is similar to Fundsmith UT but with perhaps a greater UK emphasis…

SMT, is a GLOBAL growth fund, with a yield of a FIFTH of EDIN, which is as near as you are going to get a proxy for future technology…James Anderson and Tom Walker have said as much…and there was significant gain from the pounds depreciation against the dollar following Brexit.

If people don’t like EDIN, then fine…but at least compare apples with apples.

PE

and by the way…just a thought…are people annoyed that Barnett didn’t ask the right questions, or that they themselves didn’t ask the right questions of what Barnett was doing and why they were investing in EDIN after the first profit warning?


#7

TX2

A good balanced assessment. Not surprising about tobacco as that was a house “theme” at IP and lets be honest, Barnett was Woodies understudy for many years so it is to be expected that there was an influence.

At least from your post you are able to make an assessment of whether this trust is appropriate for you rather than just looking at top performers and saying “oh it doesn’t compare against…” regardless of which area it invest in

PE


#8

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.