Forum Archive Index - September 1999

[M A Cameron <macameron@xtra.co.nz>]

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From:	M A Cameron <macameron@xtra.co.nz>
Date:	Thu, 23 Sep 1999 22:46:39 +1200

Mark Hubbard wrote:

>  To change the topic of the current threads, as interesting as they
> are, what are peoples opinions on buying into UK investment trusts. My
> real question is why would I buy into the NZSE trusts, when I can
> purchase the same shares in the UK, which must have far better
> liquidity, given the much bigger market. The 1% extra brokerage to buy
> in UK, plus extra currency risk, seems a worthy tradeoff for the
> better liquidity. So why purchase the NZ listed Trusts?

Hi Mark
I'm new to sharechat as to giving an opinion but have been following the
chat for a couple of weeks. I have quite a reasonable amount of money
invested in UK investment trusts and before investing I checked out
their performance as relates to NZ trusts and in general  I would say
they outperform quite dramatically. They certainly seem to have a better
understanding of their markets There have in recent times been some
quite large discounts to NAV due to the asian flu although many of the
trusts have share buyback programs in place now to try and maximize
value. I invested in March with heavy weighting towards Asia and am 70%
ahead to date. I'm looking at these investments for the long term so
although there is currency risk it becomes minimal spread over a few
years. A good site I've found is www.trustnet.co.uk with full monitoring
facilities.
Regards Murray

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