Share purchases: October 2017

By | November 26, 2017

Author: Mr DDU & Mrs DDU.

Disclaimer: Stocks mentioned on this blog are for general entertainment/documentation purposes only, following our own investment journey and decisions. Nothing in this article should be considered investment advice nor is intended to be investment advice. Please click here to continue reading our disclaimer. By viewing any page on this blog you are agreeing to the linked terms & conditions.

We’re into month 10 of our new investment strategy. Now that we’ve been successful with our IVF (and had our baby), we’ve decided to put at least $1,000 a month towards buying shares.

Now we get to update you guys with what we bought (and sold!) during October. In our next post we’re going to update on how our shares reported their annual results.

So, let’s get into it:

What we bought: Magellan Global Trust (ASX:MGG). We bought 600 shares at $1.52 each.

What Magellan Global Trust do: It’s a listed investment trust that is based on its unlisted global managed fund strategy.

Why we bought some shares: We’re very happy with our investment strategy so far, the dividends are growing and there has been some good capital growth as well. But we’re really under-represented to overseas investments like Google, Facebook, Apple etc.

The Magellan Trust aims to pay a 4% yield on its net assets, have a 5% discount on the dividend re-investment plan and outperform its global benchmark (which the unlisted fund has done). We’ll be looking to buy more as time goes on.   

Risks: Magellan is at risk of global economic problems as well as any tech crashes because it’s focusing on American tech giants.

Another October buy

What we bought: Trilogy International (ASX:TIL). We bought 233 shares at $2.15 each.

What Trilogy do: It’s a natural beauty business that owns the Trilogy, Ecoya and Goodness brands.

Why we bought Trilogy shares: We see Trilogy as a smaller version of BWX (which has done very well since it listed). There’s a growing movement of people using natural products in Australia, New Zealand, China and North America.

Hopefully Trilogy can grow all of its brands in these regions and it will hopefully be a good one for us.

Risks: Beauty trends can change very quickly, so Trilogy’s products could easily be replaced by the next thing. Hopefully that doesn’t befall them.

Another October buy

What we bought: MFF Capital Investments (ASX:MFF). We bought 401 shares at $2.02 each.

What MFF Capital Investments do: It’s a listed investment company that invests in overseas shares like Visa, Lowe’s and Mastercard.

Why we bought MFF Capital shares: We really went international this month. MFF Capital has been one of the best LICs over the past few years and it was trading at around a 20% discount to the pre-tax NTA when we bought it.

The management recently said they would increase the dividend in the future, after maintaining the dividend at the same level for several years.

Risks: The risks are very similar to Magellan Trust. The global economy could go through a rough patch.

A SALE

What we sold: Class (ASX:CL1). We sold all our Class shares for $3.155 per share.

Why we sold: We only bought Class earlier in the year for $2.69 each but with both the Govt changing the goalposts for SMSFs and Class’ growth rate really slowing down we thought it would be better to put our money elsewhere.

Final thoughts

So, there’s our October activity. We invested a net $1,671, which beats our goal of investing $1,000 a month. We think growing our exposure to overseas investments is a smart move and would be good to position more of the portfolio away from Australia.

What investments did you make in October?

Thanks for reading this article about our investing journey Down Under.

Onwards and upwards!

4 thoughts on “Share purchases: October 2017

  1. Dividend Diplomats

    DDU –

    Looks like you are staying on track and on a net basis crushed that track. Interesting on the Magellan Trust – have they ever cut back their dividend or does it just aim to pay 4% based on stock price, regardless?

    -Lanny

    Reply
  2. Strong Money Australia

    I haven’t looked at Magellan Global. Maybe I will soon. I like PMC for international. Invests in Asia, US, Europe. Outperformed world index over 20-odd years. Decent ff dividend – lumpy record of payments though which is a bummer.

    We hold MFF too, inside super – it’s more of an internal compounder than a dividend payer though. Actually a bit surprised you chose it?

    Reply
  3. Charlie

    Good job on the goals! Two thoughts:

    1) MGG – High relative fee structure and the possibility of tax implications as they attempt to maintain the 4% payout. Anything over 4% is a mandatory reinvestment also carrying a possible taxable event. If you were eligible for the loyalty reward then these downsides are mitigated.
    2) Unsure of MGG’s holdings, but MFF’s top ten are US companies – all solid. FX volatility (in addition to your noted global economy issues) may impact expected returns

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *