No, ITs are required under UK tax rules to distribute 85% of all income generated on their holdings in every accounting period.is it possible to get one that accumulates as well?
Thank you for passing that on. I don't know much about IT's, is it possible to get one that accumulates as well?
I'll go do some homework.
FCIT certainly has good historic credentials dating back to 1868! It also has very good global diversity even including emerging markets...F&C Investment Trust plc (FCIT) might fit the bill -
It depends!So if you invest in the FCIT and reinvest any dividends does that not make more sense than buying a global ETF?
Yes, I'd agree that the admin/accounting is probably easier with an IT.With the Investment Trust, isn't it easier to add money to that fund monthly compared to the ETF alternative, as with the ETF it's a lot of work to account for all the monthly additions after the 8 year periods?
Well, you would only have CGT when you actually sell (there's no deemed disposal) but don't forget that you will have to pay income tax on dividend payments every year.And wouldn't the IT do better with compounding as you don't deduct tax till the end of your investment period (20 years)?
If you are an individual, you have a personal exemption of €1,270 each year.
Rate of CGT
The rate of CGT is 33% for most gains.
There are other rates for specific types of gains. These rates are:
40% for gains from foreign life policies and foreign investment products
Thanks, good to know. I wasn't sure if Revenue differentiate between 'Investment Trust' and 'foreign investment product' and didn't want a nasty surprise in the future.IT are treated like shares - in fact, they are shares; you are buying shares in a company that invests
Selling enough shares to use up the CGT allowance will attract fees and commission charges
But if you have a reasonably low marginal tax rate (including PRSI and USC), then I would definitely favour an IT (such as FCIT) over an ETF that is subject to the exit tax regime.
It's not clear cut - it depends on the contribution of dividends to total return over your holding period (which is obviously unknowable in advance).What if the opposite is true, in that you pay a high marginal tax rate, in that case is an EFT (accumulating) better?
Really quite substantial feesF&C -
0.35% management fee;
0.56% total expenses (assume that does NOT include management fee);
0.65% Ongoing charges.
Total = 1.56% charges.
No, the management fee is included in the total expenses figure.0.56% total expenses (assume that does NOT include management fee);
Fund | Ticker | Rating | Allocation | Yield | Fee | Style | Strategy |
Berkshire Hathaway | BRK.B | 25% | 0.00% | Lg Blend | US | ||
F&C Investment Trust | FCIT | Silver 5 | 20% | 1.59% | 0.56% | LG Growth | Global (CORE) |
Scottish Mortgage Investment Trust plc | SMT | Gold 5 | 15% | 0.62% | 0.38% | LG Growth | Global Tech |
Schroder Asian Total Return Inv. Company | ATR | Gold 5 | 10% | 1.78% | 0.87% | Lg Blend | Asia Pacific (ex Japan) |
Jupiter European Opportunities Trust PLC | JEO | Gold 5 | 10% | 0.78% | 0.90% | LG Growth | Europe (CORE) |
BMO Global Smaller Companies Plc | BGSC | Silver 4 | 5% | 1.13% | 0.60% | Sml Growth | Global Small |
Finsbury Growth & Income Trust Plc | FGT | Gold 5 | 5% | 1.71% | 0.67% | Mix Growth | UK High Quality |
JPMorgan Emerging Markets Inv Trust | JMG | Silver 5 | 5% | 1.35% | 1.02% | LG Growth | Emerging Mkts |
Fund | Ticker | Rating | Allocation | Yield | Fee | Style | Strategy |
Bankers Investment Trust Plc | BNKR | Silver 4 | 20% | 2.37% | 0.52% | Lg Growth | Global Blend |
Murray International Trust Plc | MYI | Silver 2 | 15% | 5.55% | 0.61% | Lg Value | Intl Hi Div Yld |
JPMorgan Global Growth & Income | JGGI | Bronze 4 | 15% | 4.28% | 0.57% | Lg Growth | World Dividend Growth |
iShares Global Corporate Bond EUR Hedged | CRPH | 3 | 15% | 2.80% | 0.25% | BOND ETF | Diversified Corp Bond |
iShares European Prpty Yld ETF EUR Dist | IPRP | Bronze 4 | 10% | 3.82% | 0.40% | Mid Blend | Euro Property REIT ETF |
City of London Ord | CTY | Gold 4 | 9% | 5.46% | 0.39% | Lg Value | core UK equity income |
Temple Bar Investment Trust Plc | TMPL | Silver 1 | 7% | 6.40% | 0.49% | Mix Value | UK Value |
iShares Fallen Angels High Yield Corp Bond | WING | 4 | 5% | 4.50% | 0.50% | BOND ETF | High Yield Bond |
Mercantile Investment Trust | MRC | Bronze 4 | 4% | 3.43% | 0.47% | Sm Growth | UK Midcap |
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