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Your exposure isn't to GBP, it's to the currencies the underlying assets are held in, since there is no FX hedging.One concern is currency risk of holding investments in GBP.
Your exposure isn't to GBP, it's to the currencies the underlying assets are held in, since there is no FX hedging.
The GBP value should move to reflect the exchange rate Vs the currency the assets are held in.
Almost 50% are US companies. So 50% of your exposure is to USD.
If you've the patience to calculate it, you should see a fall in the GBP price over the past 2 weeks, reflecting the strengthened exchange rate Vs USD and EUR.
Your biggest exposure is the EUR/GBP exchange rate.
Many of these trusts are yielding 4-6%. City of London has paid a dividend for over 50 years. BRCI is on about 6%, paid quarterly. There are many others and just because I quote these, they are quoted simply as examples.
Those that exposed to non GBP currencies might be able to pay higher dividends in GBP depending on the rate.
You can buy/sell at any time as they are quoted shares, unlike investment funds. You can avail of Capital Gains Losses if you sell at a loss, you cannot do that with the fund. You can keep as long as you like, unlike the funds where you must encash every 7 years.
I'm interested to see if anyone see's these are particularly attractive investments right now due to the potential to gain on the double from a long term strengthening of the pound.
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