DEGIRO no longer allowing to buy uk trusts

[dave2015]

Hi
I have tried to buy SMT and FCIT in particular and told that will only allow reduce my position, anyone aware of the context and if other brokers have followed suit?
Thanks

 

[shades25]

I've seen the same as you for these two trusts, it looks like some other trusts listed on LSE can be bought though (haven't executed a buy but do not get the same error message).

 

[RedOnion]

I'm not an expert, but reason is Brexit. My understanding is that they're considered complex instruments, and can't be marketed in the EU until an equivalence agreement is made.

 

[AJAM]

Not sure it's quite as straightforward as that. On Degiro I can still buy
FGT, CTY, MYI and JGGI.
But I can't buy BNKR, MRC, FCIT, SMT, JEO, ATR, BGSC.
I did initially think Brexit, but shouldn't Brexit apply to all of them (Investment Trusts)?

 

[Younginvestor93]

Not sure it's quite as straightforward as that. On Degiro I can still buy
FGT, CTY, MYI and JGGI.
But I can't buy BNKR, MRC, FCIT, SMT, JEO, ATR, BGSC.
I did initially think Brexit, but shouldn't Brexit apply to all of them (Investment Trusts)?

Strange, let us know if you get to the bottom of it and get a response from Degiro.

 

[Olympian]

I asked Degiro few weeks back - specifically about SMT and FCIT. Response was that they fall under PRIIPS and need a KID - which is being worked on.

 

[Marc]

I did try to draw attention to this exact issue in several posts but I kept getting shouted down.

naturally we have been working on solutions

 

[Younginvestor93]

I asked Degiro few weeks back - specifically about SMT and FCIT. Response was that they fall under PRIIPS and need a KID - which is being worked on.

View attachment 5312

Does this mean it will be taxed at 41% like an etf or still taxed at 33%?

 

[Sarenco]

I asked Degiro few weeks back - specifically about SMT and FCIT. Response was that they fall under PRIIPS and need a KID - which is being worked on.

View attachment 5312

That’s weird because FCIT already publishes a KID.

https://www.bmogam.com/gb-en/retail/wp-content/uploads/2019/11/l133-fc-investment-trust.pdf

 

[Sarenco]

Does this mean it will be taxed at 41% like an etf or still taxed at 33%?

No.

 

[Sarenco]

As things stand today, a KID must be provided to retail investors in an investment trust.

The UK implemented the EU's PRIIPs Regulation back in 2018 and it was subsequently "onshored" so that it continues to apply as a matter of UK law post-Brexit.

So nothing has changed from a regulatory point of view.

Last July, the UK Treasury indicated that it intended to bring forward amendments to the onshored PRIIPs Regulation to improve the functioning of the PRIIPs regime in the UK
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/905542/Policy_Statement_-_PRIIPs__July_2020__HMT_Template.pdf

However, there is no proposal to remove the requirement that a KID must be provided to retail investors in an investment trust.

 

[AJAM]

Hey Folks

The following Investment Trusts are still available to Buy on Degiro

Investment	Ticker	Rating	Yield	Fee	Style	Strategy
Edinburgh Worldwide Investment Trust	EWI	Silver 5	0.00%​	0.72%​	Mid Growth	Global Small tech and Biotech
Monks Investment Trust	MNKS	Silver 5	0.18%​	0.48%​	Lg Growth	Global Large-Cap Growth
Mid Wynd International Investment Trust	MWY	Silver 3	0.90%​	0.69%​	Lg Growth	Global Moat
Pacific Assets Trust	PAC	Silver 4	0.94%​	1.19%​	Lg Growth	Asia Pacific (Ex Japan, Aus & NZ)
JPMorgan American Investment Trust	JAM	Bronze 3	1.09%​	0.18%​	Lg Blend	US Core
Fidelity Asian Values	FAS	Silver 4	1.86%​	0.99%​	Mid Value	Asian Region (excluding Japan)
Finsbury Growth & Income Trust	FGT	Silver 5	1.93%​	0.64%​	Mix Growth	UK High Quality
JPMorgan Global Growth & Income	JGGI	Bronze 4	3.21%​	0.56%​	Lg Growth	World Dividend Growth
MURRAY INTERNATIONAL TRUST	MYI	Silver 2	4.54%​	0.65%​	Lg Value	Intl Hi Div Yld (ex US)
City of London	CTY	Silver 4	5.05%​	0.36%​	Lg Value	core UK equity income

Note, there are others available, but I stick to ones that have a Morningstar rating of Bronze or better.

 

[thespecialon]

Anyone have an update on this? I cant seem to buy any Investment Trusts on LSE - I already hold Templeton Emerging Markets, Fidelity European Trust and Bankers Investment trust but cant add to these positions...Is there US/European market equivalents or what are people doing that invested in these trusts regularly?
Thanks

 

[jpd]

There is generally no equivalent trusts on European markets.
There are plenty of ETFs which fulfill the role of UK investment trusts in Europe and which are taxed as shares in many European countries. But not in Ireland, of course

 

[thespecialon]

There is generally no equivalent trusts on European markets.
There are plenty of ETFs which fulfill the role of UK investment trusts in Europe and which are taxed as shares in many European countries. But not in Ireland, of course

Thanks,yea I'd prefer to be investing in ETFs but as you say it's a pain re tax treatment so that's why I went down the investment trust route but that seems to be blocked for now at least

 

[MugsGame]

Would you consider a direct investment in Berkshire, and/or its smaller copycats: Markel and Alleghany? They behave like a well managed US active fund/ETF, but are just a normal company stock, so gains only attract tax (CGT) on disposal. And growth focused so reinvest profits rather than paying dividends.

Disclosure: I hold a position in some of the securities mentioned. I cannot predict their future performance, but their tax treatment seems to meet your requirements.

 

[thespecialon]

Would you consider a direct investment in Berkshire, and/or its smaller copycats: Markel and Alleghany? They behave like a well managed US active fund/ETF, but are just a normal company stock, so gains only attract tax (CGT) on disposal. And growth focused so reinvest profits rather than paying dividends.

Disclosure: I hold a position in some of the securities mentioned. I cannot predict their future performance, but their tax treatment seems to meet your requirements.

Thanks yea I already hold Berkshire and will keep adding to it , I'll look into the other 2 you mention ..I suppose I wanted to diversify away from the US a bit ,hence the European values and emerging markets, even though I know most big companies are multinational anyway

 

[Jimmy2times9999]

Hey Folks

The following Investment Trusts are still available to Buy on Degiro

Investment	Ticker	Rating	Yield	Fee	Style	Strategy
Edinburgh Worldwide Investment Trust	EWI	Silver 5	0.00%​	0.72%​	Mid Growth	Global Small tech and Biotech
Monks Investment Trust	MNKS	Silver 5	0.18%​	0.48%​	Lg Growth	Global Large-Cap Growth
Mid Wynd International Investment Trust	MWY	Silver 3	0.90%​	0.69%​	Lg Growth	Global Moat
Pacific Assets Trust	PAC	Silver 4	0.94%​	1.19%​	Lg Growth	Asia Pacific (Ex Japan, Aus & NZ)
JPMorgan American Investment Trust	JAM	Bronze 3	1.09%​	0.18%​	Lg Blend	US Core
Fidelity Asian Values	FAS	Silver 4	1.86%​	0.99%​	Mid Value	Asian Region (excluding Japan)
Finsbury Growth & Income Trust	FGT	Silver 5	1.93%​	0.64%​	Mix Growth	UK High Quality
JPMorgan Global Growth & Income	JGGI	Bronze 4	3.21%​	0.56%​	Lg Growth	World Dividend Growth
MURRAY INTERNATIONAL TRUST	MYI	Silver 2	4.54%​	0.65%​	Lg Value	Intl Hi Div Yld (ex US)
City of London	CTY	Silver 4	5.05%​	0.36%​	Lg Value	core UK equity income

Note, there are others available, but I stick to ones that have a Morningstar rating of Bronze or better.

These appear to be removed now except JGGI. Any idea why some are being removed but some kept?

 

[k06351000]

Any updates on this? Seem to be even fewer available now, but such as JGGI still available to purchase,

 

[Ravima]

CTY not there now!