Which way next ? The only way I know is to keep waiting and watching.

The AIC dividend heroes are the investment companies that have consistently increased their dividends for 20 or more years in a row.

Company AIC sector Number of consecutive years dividend increased

City of London Investment Trust UK Equity Income 57
Bankers Investment Trust Global 57
Alliance Trust Global 57
Caledonia Investments Flexible Investment 56
The Global Smaller Companies Trust Global Smaller Companies 53
F&C Investment Trust Global 53
Brunner Investment Trust Global 52
JPMorgan Claverhouse UK Equity Income 51
Murray Income Trust UK Equity Income 50
Scottish American Global Equity Income 50
Witan Investment Trust Global 49
Merchants Trust UK Equity Income 41
Scottish Mortgage Investment Trust Global 41
Value and Indexed Property Income Property – UK Commercial 36
CT UK Capital & Income UK Equity Income 30
Schroder Income Growth Fund UK Equity Income 28
abrdn Equity Income Trust UK Equity Income 23
Athelney Trust UK Smaller Companies 21
BlackRock Smaller Companies UK Smaller Companies 20
Henderson Smaller Companies UK Smaller Companies 20

At the arrow, a bear trap. The market pushes higher before suddenly reversing. If u fail to act u have a big losing position or u have gave back a good part of any profit.

How to spot a poorly performing investment fund

The Week UK

Story by Marc Shoffman

The best ways to monitor your investment portfolio
Investing is a great way to build wealth so you can save towards major expenses such as a mortgage, or for your retirement.

It is important to check on your investment portfolio occasionally, explained Hargreaves Lansdown, when your investment objectives change “or if there have been some big changes in the markets”.

This is particularly true in the current climate as economic uncertainty such as high inflation, rising interest rates and war in Ukraine have been causing “turbulence” on the financial markets, said MoneyWeek, “potentially denting the returns enjoyed from certain funds”.
Here is how to keep an eye on your investment portfolio.

Performance figures
All investment funds will provide documents such as fund factsheets and value-assessment reports that outline their performance over a set period.

Historical returns “shouldn’t be a guide” to future performance, said The Times Money Mentor, but can be an “important gauge of whether a manager has delivered or not”.

Websites such as Trustnet and Morningstar also show how funds have performed compared with their own sector or benchmark.

Keep an eye on the commentaries accompanying this data, said Investors’ Chronicle, as “big moves in and out of different investments” may indicate problems while a change in style may mean the fund “no longer serves its chosen purpose”.

Some financial firms also produce regular reports that highlight good and bad performing funds.

One of the best known is investment platform Bestinvest’s Spot the Dog report, which “lists the bad mutts of the fund management industry”.

The report highlights funds or “dogs” that have failed to beat their own benchmark over three consecutive years by 5% or more.

Its latest report showed the number of dog funds rose from 44 to 56 and, the assets in those “misbehaving mutts” increased to £46.2 billion from £19.1 billion.

Similarly, Chelsea Financial Services publishes a regular RedZone report that “names and shames” the funds that have underperformed their sector average for three years in a row.

It’s generally seen as a “bad idea” to sell a fund based on poor performance alone, said interactive investor. But it “may make sense” if the fund manager shows no sign of taking action.

Do your research
You can’t rely only on performance tables, said MoneyToTheMasses, as “no fund manager outperforms in every market condition”, but investors need to find the best funds to invest in “for the current environment”.

Different fund managers perform well in different circumstances, explained Willis Owen, and as time goes on, “your position and those of your investments will change”.

That makes it all the more important to understand how a fund is managed, said Charles Stanley, as well as knowing the reasons why it has performed the way it has and “what conditions it will likely perform best in going forward”.

Be careful about too many changes though. People invest for the long term, said Hargreaves Lansdown, so you shouldn’t be worried about what happens to the share or bond price “today or tomorrow”.

If investors stick to their long-term plan, they can avoid making decisions regarding their investments simply as a result of what is happening in the present.

As a “rule of thumb”, said MoneySavingExpert, five years typically gives “enough time to ride out any bumps in the market”.

Also, keep an eye on fund charges, said Which?, as while fund performance can vary, you’ll have to pay the charges “come rain or shine”, which can make a “huge difference” to your returns.

Marc Shoffman is an award-winning freelance journalist, specialising in business, property and personal finance. He has a master’s degree in financial journalism from City University and has previously written for FTAdviser, ThisIsMoney, The Mail on Sunday and MoneyWeek.

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5 years is a long time to wait to find out your IT has performed badly.

Compound growth: A powerful argument for investing long term© Provided by This Is Money

Investing over many years eventually reaches a ‘tipping point’ where your returns double what you’ve put in to date, highlights new research from Interactive Investor.

In a powerful argument for investing long term, compound growth can account for an ever larger share of your portfolio or pension fund over the years.

Putting £250 per month into investments returning 5 per cent a year would see a gain of £83 on your £3,000 total contributions, or 3 per cent, in year one.

This means that your returns after that year would represent just a small percentage of the total pot. 

But by year 10, the power of compounding would mean the portion delivered by investment growth would make up 30 per cent of the overall portfolio, and by year 20 it would be 72 per cent.

At year 26 it would hit 105 per cent – with a pot containing £78,000 worth of your monthly contributions over the period now worth £160,229.

Then you’ve reached the tipping point where your returns double what you’ve put in.

If you paid in the same amount but achieved an annual investment return of 7 per cent, it would take 18 years to reach the investment ‘tipping point’, calculates ii.

‘This varies for each individual’s investment strategy and market conditions. 

‘In our scenario, the investment tipping point is 26 years, but the reality is many investors will hit their financial goal, be it investing to buy a home or for retirement, a lot sooner.’

Five per cent growth: Impact of compounding interest over 30 years on £250 monthly contributions (Source: Interactive Investor)© Provided by This Is Money

Jobson explains: ‘The nature of investing means the annual rate of return isn’t fixed, meaning you can earn more or less in a given year, depending on the market environment.

Jobson adds that for pension savers, retirement investments are turbocharged by the tax relief and employer cash that are added to your own contributions.

‘This dual advantage not only amplifies the initial investment but also leverages compounding over time, accelerating the growth of the pension fund.’

Seven per cent growth: Impact of compounding interest over 30 years on £250 monthly  contributions (Source: Interactive Investor)© Provided by This Is Money

Pensions and the magic of compound growth 

Pensions are possibly the longest-term investment you will ever have, which makes them particularly fertile ground for compounding to work its magic.

Think of your own and your employer’s pension contributions as the seeds, tax relief as the water, your investment plan as the soil and compound growth as the sunshine, helping to grow what eventually becomes a mature pension pot for when you retire.

The investment ‘tipping point’: When do your returns overtake total contributions?© Provided by This Is Money

One of the beauties of pensions is that if you start paying into them early, as so many workers now do thanks to auto-enrolment kicking in at age 22 (set to come down to 18), you will benefit from around 45 years of compound growth from the investments within that pension.

In fact, assuming roughly similar average annual investment returns, the impact of compound growth for younger pension savers who maximise their workplace pension contributions in their early career rather than starting with lower contributions or even foregoing a pension altogether for more immediate priorities, can be really astonishing.

Someone who makes the same annual contribution of £2,000 a year for their whole working life, but misses five years of pension contributions in their twenties would have a pot £22,000 lower at retirement, at £121,450 rather than £143,215.

“Compounding can work against you too, in that percentage fees on investment products can add up the wrong way, magnifying the reduction in your investment pot over time”

However, if they choose to keep paying in when they are young and instead miss those five years of contributions when they are older, from 60 to 65, the impact on their pension pot is much smaller – with a pot size around £11,000 lower, at £131,895, highlighting the greater importance of contributions made early on to eventual pot size.

Unfortunately, compounding can work against you too, in that percentage fees on investment products can add up the wrong way, magnifying the reduction in your investment pot over time.

Of course if your investment grows by significantly more than the fee, the impact of this is reduced, but it’s worth keeping an eye on and making sure you aren’t being charged over the odds for an investment that isn’t delivering.

How to get the most out of long-term investing

Myron Jobson of Interactive Investor offers the following tips.

1. Take advantage of Isa allowances 

The shrinking capital gains and dividend tax allowances provide the impetus for investors to invest through a tax-efficient wrapper if they haven’t already done so.

The transfer, however, will involve selling and buying back shares, which could trigger a capital gains tax bill.

Over the long term Bed & Isa is likely to outweigh the charges that might apply.

2. Consider using your partner’s Isa allowance

You can also help reduce your taxable income by transferring assets between spouses or civil partners.

Each year you can shelter £20,000 from tax in an Isa – so £40,000 between two.

Only married couples and civil partners can transfer assets tax-free, meaning those who aren’t could potentially trigger a tax liability.

The investment ‘tipping point’: When do your returns overtake total contributions?© Provided by This Is Money

Money expert Becky O’Connor of PensionBee reveals the most useful – and profitable – real world sums.

Compound growth, which generates massive gains the longer you save and invest, is lesson number one… so what are the others?

3. Understand your risk profile

Risk is an inherent part of investing, but it’s a tough balance. Take too much risk, and you might find yourself racking up some painful investing lessons.

But taking too little (or no risk in the case of cash) is a risky strategy in itself. It could have a hugely detrimental effect on your finances in the future because you might not reach your goals.

And our risk appetite isn’t static. It can change as our circumstances change so needs reviewing regularly.

4. Diversify your investments

This reduces the risk of any one stock in the portfolio hurting the overall performance.

But diversification doesn’t just mean investing in different stocks. It also means having exposure to different sectors, assets, and regions.

5. Rebalance your investments

Trimming the excesses and redirecting funds into underperforming assets ensures that your risk-return equilibrium remains intact.

This calculated approach of buying low and selling high has the potential to bolster long-term returns.

Whether nearing retirement or sprinting towards a shorter investment horizon, rebalancing grants the opportunity to recalibrate allocations to achieve the desired financial destination.

6. Review costs and fees

Investors cannot control the market, but they can control how much they pay to invest. Understand the costs associated with your investments – not least the platform charge.

7. Drip feed your investments

A good and proven way of lowering your investment risk is by investing small amounts regularly. Most often, investors do this by drip-feeding investments monthly to help smooth out the inevitable bumps in the market.

The advantage is that you also buy fewer shares when prices are high and more when prices are low – a process known as pound-cost averaging.

8. Set clear goals

Define your financial goals and time horizon before making investment decisions. Avoid making impulsive decisions based on short-term market fluctuations. Stick to your investment strategy.

JLEN ENVIRONMENTAL ASSETS GROUP LIMITED

(“JLEN” or the “Company”)

Potential acquisition by Refuels of non-controlling assets of CNG portfolio

JLEN notes the announcement this morning by ReFuels N.V. (“ReFuels“) regarding discussions it has held with the Foresight Group (“Foresight“) relating to the potential acquisition by ReFuels of the remaining part of the CNG station portfolio it does not control (“CNG Portfolio“), and an equity and debt capital raise it is planning to fund the transaction.

JLEN holds an interest in the CNG Portfolio (representing approximately 3% of the Company’s portfolio) and confirms that Foresight has held discussions with ReFuels regarding the potential acquisition of Foresight’s interests in the CNG Portfolio (including JLEN’s interest). Any transaction remains subject to the agreement of terms acceptable to Foresight and JLEN and there is no certainty that the Refuels fundraising or the sale of the CNG Portfolio will proceed.”

I have bought for the portfolio 6841 shares in JLEN for 6k.

Yielding 8.5% trading at a discount to NAV of 27%

Darvas Box.

IF I owned I would take my profits today, the worst that can happen is the price goes back up and I have to buyback but with dealing costs having fell that’s not now a problem.

Story by Cliff D’Arcy

The 6 big problems with dividend shares

As an older investor seeking passive income, I like dividend shares. Actually, most of my family’s unearned income nowadays comes from these cash payments that companies make to their shareholders.

The downsides of dividend investing
In an ideal world, I could make money simply by buying stocks that offer market-beating dividends. Alas, this world is far from ideal, so this is no ‘get rich quick’ scheme.

For example, here are six problems that I have to deal with as a dividend disciple:

1. Only some shares pay out cash
   Almost all shares in the blue-chip FTSE 100 index pay out dividends. However, this proportion reduces rapidly as I move into the mid-cap FTSE 250 and smaller companies. That’s why the Footsie is my #1 hunting ground for cash streams.
2. Payouts are not guaranteed
   Unfortunately, future unpaid dividends are almost never guaranteed. Therefore, they can be cut or cancelled with hardly any notice. This happened a lot during the Covid-19 crisis and continues today among companies that need to preserve cash.
3. Yields are usually historic
   When I look up the dividend yield of a particular share, it’s important for me to establish whether it is a trailing (historic) or forecast (future) yield. Also, if a firm has recently cut its payout, then this may not be entirely apparent, so I always dig deeper into its public announcements.

4. The dividend curse
   Sometimes, listed businesses that pay out large proportions of their profits in dividends neglect to invest sufficiently in future growth. When this happens, I occasionally notice it by spotting long-term declines in share prices over, say, three and five years.

I call this effect — hefty dividends undercut by falling share prices — the ‘dividend curse’.

5. Debt and divvies
   Paying out large sums in cash to shareholders over time can leave a company’s balance sheet looking shaky or stretched. Also, some firms prefer to increase their net debt rather than prune payouts to their owners
6. The ex-dividend drop
   The ex-dividend date is the day that new shareholders no longer collect the next dividend. Thus, buying stock before this day secures me the dividend, while buying on or after the ex-dividend date means I don’t collect it.

Hence, share prices usually drop on ex-dividend dates to reflect the loss of this cash reward.

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Or reasons, why I only have Investment Trusts in the portfolio.

Ross Grier, COO and Head of UK Investments, NextEnergy Capital, commented:

“We are pleased to have secured similar terms on NextEnergy Solar Fund’s primary revolving credit facility.  As we have previously indicated, we continue to observe significant lender interest in providing debt to the solar infrastructure sector across the geographies we are active in.  This refinancing demonstrates lenders’ continued appetite to provide facilities against utility-scale solar assets in the UK on attractive terms. NESF maintains a disciplined approach to its capital structure and the sale of assets within the current capital recycling programme remain a key priority for the Company, the proceeds of which will be used to pay down existing RCF borrowings.”