Investment Trusts Are Foolish

Published in Investing on 11 May 2012

The benefits of ISAs and supermarket results were also hot topics on the boards this week.

Investment trusts are Foolish

In Foolish circles, we turn our noses up at managed funds that charge high fees, and whose aim is to enrich the companies running them rather than the investors who put in their hard-earned cash. But investment trusts are another matter. The investors are the owners of the companies, eliminating that conflict of interest, and they can be a very Foolish home for our money.

Over on the Investment Trusts & Unit Trusts board, Luniversal has given us his latest round-up of the investment trust market...

"This is my third six-monthly trot through Britain's conventional investment trusts and quasi-trusts, following Oct. 2011's at #12884. (The first, a year ago, was not posted.) I have taken the measures of more than 200 ITs which had market values of £50m or more at the end of last month [...]

The purpose of this exercise is not tipping, pro or anti, but to give cues for further analysis."

If you're interested in this type of investment, it's a very useful overview.

Why use an ISA?

If you're investing in a company and expect any capital gains to be manageable using your annual allowances, is there any benefit in putting the shares in an ISA? That's a question addressed by NotherHubbard this week, on the Banking Sector board...

"Even if you are currently a basic rate (or non-) taxpayer who does not have much in the way of capital gains to worry about, the following are a not-at-all-exhaustive lists of reasons to hold in an ISA:

No FUTURE liability for additional Income Tax

No FUTURE liability for any Capital Gains Tax

No FUTURE liability for age related allowances"

We couldn't have said it better!

Buy Premier Foods?

One of the great consequences of the annual share competition held on the Paulypilot's Pub - Share Ideas board is that once an entrant has written up their share idea, the discussion often carries on over the year, updating us with the latest news and thoughts about the company.

This week, on the thread discussing march77's pick of Premier Foods (LSE: PFD), Vailima gives us the latest from the company's AGM...

"First things first. It has been another busy period for PFD: an interim management statement, a 1-for-10 share consolidation and, yes, an AGM. In fact, in the interests of looking out for my substantial investment, not to mention Educating and Enriching you guys (you can decide about Amusement) you will be pleased to know I attended PFD's AGM on 3 May, my very first corporate AGM!"

If you want to know how it went, come on over.

Supermarket battles

After the slump in the Tesco (LSE: TSCO) share price following on from a disappointing Christmas period, attention has turned towards our other FTSE 100 supermarkets. And this week, RCrumble took a look at first-quarter results from J Sainsbury (LSE: SBRY), over on the company's dedicated board...

"At first glance these results look fairly tasty, even if it's another one of these "underlying profit up, statutory profit down" stories which force you to dig through the balance sheet to figure out what happened..."

If you want to find out, head on over -- and please feel free to add your own thoughts.

Europe is doomed!

If you took any notice of the newspaper headlines following the recent elections in Europe, you could be forgiven for believing that it's the French president-elect, Francois Hollande, fixing to destroy the eurozone now, not the Greeks.

But the reality is not quite so dramatic, as BertEEE opines, at Bert's Investor Sanctuary...

"This is my take on it anyway - not comprehensive but from going through his pledges and various research pieces I've had on the election. Much of it now looks pretty moderate and some of the wilder speculation has been reigned in - so the 20:1 pay ratio was originally talked about as if it would be for all companies, now it's just state companies for example."

If you want to know more, pop on over for a comprehensive look at the details.

An old friend gone

Living Below Your Means means getting the best value for the money you spend, and part of that comes from the satisfaction of investing in good stuff that will last. But few can manage the longevity of Victor Vactric. Who? What? Over on the board of the same name, rhyd6 explains...

"Alas Victor Vactric is dead. Victor Vactric came into my life when I was 13 - I was 70 this year so work it out."

You'll have to read it to find out more.

Last week's roundup: Shareholder Power!

> Alan does not own any shares mentioned in this article.

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