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Invest €50k in a widely diversified investment trust like Foreign & Colonial Investment Trust plc (FRCL).
As the investment property was meant to be our pension we are now looking for a good way to invest the remaining 100k. A nurse and garda with 3 young children, we would like to put some away for their future (college, weddings etc) and realise that this is probably the only time we will ever have the opportunity to invest such a large sum of money and we’d like to invest it wisely.
We had mortgage protection policies on both properties. These are now cancelled and we would like to take out some insurance which would pay a lump sum to our children in the event of either of our deaths.
Sorry, the NAV is the shareholders' funds (i.e. total assets less total liabilities) per share. If you go to the last annual report you can see how it's calculated. It's not what the managers think a share is worth. You need to look at the gearing or total debt, which is a liability on the fund. A highly geared IT may have a low NAV. It's not that you're getting assets worth X at a bargain;you're getting assets worth X less debt of Y; it's an indicator of how much debt the IT is carrying. (And this, of course, is in addition to any debt the individual securities are also carrying.)The NAV is what the managers of the fund think the share is worth. The Share price is what someone who wants to buy thinks it is worth. Unless the fund only holds shares/securities that are easily traded and thus readily priced then the divergence of the two prices is a judgement call. It means that the funds hold assets that the managers think are worth more than Mr Market thinks - and who knows who is correct? Is Apple worth a trillion $s - a lot of people think so but mightn't mean much in a few months time
IWDA is subject to exit tax @41%, with a deemed disposal every 8 years, whereas FRCL is subject to the usual income tax/CGT regime.Sarenco what do you see as the advantage of investing in FRCL vs an accumulating UCITs etf like eg IWDA?
Sorry, the NAV is the shareholders' funds (i.e. total assets less total liabilities) per share. If you go to the last annual report you can see how it's calculated. It's not what the managers think a share is worth. You need to look at the gearing or total debt, which is a liability on the fund. A highly geared IT may have a low NAV. It's not that you're getting assets worth X at a bargain;you're getting assets worth X less debt of Y; it's an indicator of how much debt the IT is carrying. (And this, of course, is in addition to any debt the individual securities are also carrying.)
You're not really exposed to GBP.avoid the sterling exposure
IWDA is subject to exit tax @41%, with a deemed disposal every 8 years, whereas FRCL is subject to the usual income tax/CGT regime.
There are a few other reasons why I often recommend FRCL for retail investors but the relative simplicity of the tax treatment is probably the main one.
Here's a link to a fact sheet with the key details for FRCL.Any chance you would expand on / tell more about FRCL?
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