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Would you sell your European trust?
Robert D
Posted: 07 September 2017 19:54:10(UTC)

Joined: 06/11/2016(UTC)
Posts: 1

European trusts have had a tremendous run in the past 6 - 9 months. My holding in TR European Growth has risen by more than 50%.

The question is, as the sector has come back into favour and discounts have narrowed considerably (TRG is down to a circa 3% discount from 15% a while ago), is it time to sell or do investors think there is further to go ?

Posted: 08 September 2017 17:45:53(UTC)

Joined: 14/01/2012(UTC)
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I hold HEFT and no, I don't intend selling, certainly not at the moment. The pound is very weak against the euro so until the pound starts to climb I think Europe is still a good investment. I rode the fall of the pound against the dollar with NAIT, selling when the dollar started to lose value and did quite well, Although I have to say I'm more of a buy and hold person rather than trying to time sales. But saying that I can foresee the euro running into the buffers eventually so watching closely.

Regards, John.
1 user thanked JohnW for this post.
Hilary hames on 08/09/2017(UTC)
Law Man
Posted: 08 September 2017 18:47:49(UTC)

Joined: 29/04/2014(UTC)
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The honest answer is that we do not know: if we did prices would have fallen already.

My own approach is:

(1) stay diversified, and so keep some in Europe, but

(2) my recent new money into Europe went into an OEIC fund. Normally I prefer ITs, but discounts to NAV are so low that we risk a double loss: fall in share price accompanied by widening discount.

Nothing revelatory in this.
3 users thanked Law Man for this post.
Tim D on 08/09/2017(UTC), Shetland on 09/09/2017(UTC), Mickey on 09/09/2017(UTC)
Hilary hames
Posted: 08 September 2017 21:33:30(UTC)

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I have just sold Jupiter European opportunities trust as not doing as well now. I would like to reinvest in Europe but worried about narrowing discounts. I have EAT still. May I ask which fund you have recently invested in Lawman and why you chose that particular fund?
Stephen B.
Posted: 10 September 2017 15:40:50(UTC)

Joined: 26/09/2012(UTC)
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European economies are genuinely doing quite a lot better than they were a few years ago, and the re-rating is a response to that. Obviously things might get worse again, but the same can be said for any market. For UK investors exchange rates are probably the biggest risk in the short term, the pound is nearly down to parity with the euro and that could potentially reverse.

BTW, I hold JESC and that's still on a 12% discount, I'm not sure if that counts as good or bad but at least it gives less pressure to sell.
Big boy
Posted: 10 September 2017 15:54:02(UTC)

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Sell where the discount has narrowed close to NAVs. Always a good sign that investors confidence is high and market getting overvalued. Investors confidence was at a low when the FTSE 100 was 6000 and Investment Trust discounts had plummeted. Not sure much has changed apart from massive devaluation which now means investors want out of UK.... .could be the time to come back????
2 users thanked Big boy for this post.
Sara G on 10/09/2017(UTC), Tim D on 10/09/2017(UTC)
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