Portfolio commentary: boring blue chips, please

Why I’ve taken a position in dull but worthy City of London Investment Trust

Photo by Erik Jacobson on Unsplash

As I’ve previously mentioned, I’m going to begin building my Sipp with a few well-selected investment trusts – an instant portfolio if you like, hopefully bought at a discount to the underlying value of the assets in them.

Trusts in this report

Source: SharePad

A few readers also offered a few suggestions of trusts I could look at, among them Scottish Mortgage which at the time I wrote was trading at about 1,461p a share, an 8% premium to its net asset value (NAV). I’ve long liked Scottish Mortgage and would like to join my kids and many others in owning it, but as I said, the premium was too punchy for me given I reckon markets are looking pretty frothy.

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Can Smithson stand up to higher inflation?

Smithson is one of the best investment trusts for quality growth investors. But does its ownership of expensive shares leave it vulnerable to higher inflation?

Smithson has been in business since October 2018. It was set up to invest in global small and mid cap companies with market capitalisations of between £500m and £15 billion. In short, it is designed to invest in the kind of companies that its bigger brother Fundsmith cannot.

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Finsbury Growth and Income Trust: Can it come good again?

An uncommon share price discount to NAV suggests that investors are lukewarm on the investment trust. Are the concerns overdone?

Investing is difficult. Even the best fund managers cannot expect to outperform every year. Nick Train’s investing style has worked well in the past but it is now underperforming. Can it get back on track?

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