It now seems to be widely accepted that the returns retail investors actually receive from investing in funds is lower than the funds’ reported returns. This performance gap is blamed on investors’ return-chasing behaviour as a result of which they have a habit of switching funds at the wrong time. This is an important issue, given the amount invested globally in mutual funds. However, in my view, the performance gap is to a large degree, even if not entirely, an illusion.
I added to my position in AGIT on 25 February at a price of 117.3p, increasing the position size to 4.3% of my portfolio. The current discount to NAV is around 18%.
I sold part of my shareholding in Aberforth Smaller Companies Trust (ticker: ASL) on 21 February at a price of 794p. Following my recent purchase of a shareholding in Aberforth Geared Income Trust (AGIT), I had been looking to reduce my position in ASL.
Aberforth Geared Income Trust (ticker: AGIT) is a split capital investment trust, which invests in quoted UK smaller companies. The trust is managed by Aberforth Partners, the specialist UK smaller companies fund manager, which also manages the Aberforth Smaller Companies Trust (ASCoT), together with an equivalent open-ended fund.
I have initiated a position in the ordinary shares of Aberforth Geared Income Trust (ticker: AGIT), a split capital investment trust investing in the UK smaller companies sector. I bought the shareholding on 15 February at a price of 115.85p. The discount has widened in recent weeks to around 18%, significantly higher than historic levels. The shareholding in AGIT represents just under 3% of my portfolio. My detailed research can be found here.
I have reinvested some of the proceeds of recent sales in the HSBC S&P 500 ETF (ticker: HSPX), as cash balances had increased to around 15% of the portfolio. Putting 5% of the portfolio in this S&P 500 index tracker has reduced cash to around 10%.
I have sold my entire shareholding in Investor AB (ticker: INVEA, for the non-voting A-shares), the Swedish industrial holding company, controlled by the Wallenberg family. I sold on 8 February at a price of SEK 179 per share.
I sold my entire shareholding in JP Morgan Asian Investment Trust (ticker: JAI) on 1 February at a price of 214.5p, which was a discount of around 10% to NAV. I decided to sell following the passing of the continuation resolution at the recent AGM.