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Dunedin Income Growth
N Brun
Posted: 27 February 2018 22:15:26(UTC)
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I like the look of Dunedin but I think I might be wearing my rose tinted value investor glasses. I'm not seeing many negatives so I'm posting here for a bit of balance! Here's the case for:

Dunedin has suffered without doing anything drastically wrong due to Aberdeens value style and the need to pay a dividend.

It trades on a decent discount, has a chunky dividend (with reserves) & is stuffed full of UK blue chips.

The pedestrian recent performance is a pretty large elephant in the room but I'd be buying into where it's going rather than where it's been. As we are always told past performance is no guide etc...

I want the case against but ideally something more than "I've looked at the last 5 years performance graph, it's poor you're an idiot"!
1 user thanked N Brun for this post.
Mr Helpful on 28/02/2018(UTC)
Keith Cobby
Posted: 27 February 2018 23:19:47(UTC)
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It's not just Dunedin but Murray Income too. Also the Aberdeen Asian trusts have been poor performers. I think Aberdeen have lost their way with investment trusts. Dividends don't really matter, it's the total return that is important.
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Mickey on 28/02/2018(UTC), dlp6666 on 28/02/2018(UTC)
Mr Helpful
Posted: 28 February 2018 09:20:32(UTC)
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For UK Stocks income DIG looks OK.
Portfolio contains all the usual suspects.
See no specific reason to avoid.
Have added to own watch-list.

For same purpose we are currently using CTY, SCF, VUKE (FTSE100 tracker),
plus also SDV to cover the smaller companies.

DIG today in terms of historic upside potential v downside risk, seems to be priced about the same as CTY or SCF, albeit with higher yield as noted.
For an income position nav growth and share price performance have less relevance.

Plenty of downside remains for all mentioned, should markets succumb.
Mickey
Posted: 28 February 2018 09:32:07(UTC)
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UK Equity Income, my only holding now is Finsbury Growth Trust after selling Troy Income & Growth. If I were buying then it would be Merchants.
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Mr Helpful on 28/02/2018(UTC)
Tug Boat
Posted: 28 February 2018 09:55:29(UTC)
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Held DIG for a few years. A totally unremarkable fund. However, this is in my slush fund ISA, solely used to generate cash for red wine and rugby awaydays.

I've recently bought DIG a little brother to keep him company, I call him MRCH.

Both are bets on Brexit. If Brexit is painful, then I expect DIG and his new sibling to plod on, if there's a sensible outcome, then I see some upside.

2 users thanked Tug Boat for this post.
dlp6666 on 28/02/2018(UTC), Mr Helpful on 28/02/2018(UTC)
Peter Young
Posted: 28 February 2018 14:36:49(UTC)
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Have a look at SHRS. Also managed by Aberdeen with some of the same underlying holdings. Good yield, smaller discount, and has performed better of late than DIG or MUT.

I have all three of these in my SIPP but I agree with Keith Cobby that DIG and MUT have been disappointing overall for some time. MUT have a new chairman that might shake up or replace the manager - let's hope the same will happen to DIG.

Inderpal Singh Khalsa
Posted: 28 February 2018 15:47:36(UTC)
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I have been with Aberdeen for the last few years and have hodings in MUT,MYI, NAIT,AAIF,ADIG. All but MYI in a monthly investment plan so the performance vary.
At one stage MYI was totally out of favour but recently it's performance has picked up.
NAIT is one of the best performers in its sector. There is a lot of similiarity between DIG and MUT, both have number of bluechip share and both have underperformed the market. MUT has a decent yield of over 4%.

Over the long run, monthly investment pays out and perfromance vary.
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Mr Helpful on 28/02/2018(UTC), gillyann on 28/02/2018(UTC)
Keith Cobby
Posted: 28 February 2018 20:14:27(UTC)
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I had an Aberdeen investment plan and held most of the same investments. I don't know what has gone wrong with them as many of the trusts are performing poorly. I was especially disappointed with the Asian trusts as they always made a big thing of their investment processes and their regional director Hugh Young, his experience and large Singapore based team.

I closed the plan and moved all funds into the Baillie Gifford trusts.
FarmerDoc
Posted: 01 March 2018 09:34:56(UTC)
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N Brun, rather than just looking at Dunedin in isolation, you might like to consider your overall portfolio in terms of % in the domestic market. I have almost 37% in UK investment trusts though I appreciate these include many companies that are global players. I now consider this % too high and am reducing the number of equity income trusts and reinvesting in VWRL instead. With the uncertainties around Brexit, I feel more comfortable moving towards an increasing holding in a global ETF.
2 users thanked FarmerDoc for this post.
Mr Helpful on 01/03/2018(UTC), Sara G on 01/03/2018(UTC)
Mickey
Posted: 01 March 2018 09:57:01(UTC)
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FarmerDoc;58018 wrote:
.....With the uncertainties around Brexit, I feel more comfortable moving towards an increasing holding in a global ETF.

Interesting, I wonder if the Brexit uncertainty is actually offering an opportunity. I recall John Baron has around 35% and thinks the UK is undervalued at the moment. Having said that, I am 25% in UK with Finsbury Growth Trust, Henderson Smaller Co's and JPMorgan Mid Cap.
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Mr Helpful on 01/03/2018(UTC)
Keith Cobby
Posted: 01 March 2018 10:41:01(UTC)
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I also think the UK is undervalued, but then so are the asian markets. I just can't see what will cause an uprating. A bit like Russia, looks very cheap but you know it isn't going anywhere.
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Mickey on 01/03/2018(UTC), Mr Helpful on 01/03/2018(UTC)
xcity
Posted: 01 March 2018 11:12:09(UTC)
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Remember that an average performing geared IT will underperform (NAV) on the way down, and vice versa. And IT discounts can widen in a bear market.
Hank Elvis Dobbs (texan)
Posted: 01 March 2018 13:28:32(UTC)
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"More trouble than they're worth them reindeer..."

Interesting comments by Derek (Harry) Nimmo over on the IT section appears to contradict himself with his actions...

..Stay in then
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