Twentyfour Sel Share Price (SMIF)

They invest in debt instruments on top of corporate bonds which are considered complex. Here's what the fact sheet says:

"The Fund will actively invest in a diversified portfolio of fixed income credit securities that exhibit an illiquidity

premium, and which the Portfolio Managers believe represent attractive relative value. These securities will include (but are not limited to): corporate bonds, asset-backed securities, high yield bonds, bank capital, Additional Tier 1 securities, payment-in-kind notes and leveraged loans."

It's an Investment Trust so ideal for illiquid assets and you have to trust they are honest and know what they are doing like any fund. They are members of the AIC which is my first IT filter. Steady return with an end of year bonus plus the occasional random bonus, 50% last month compared to previous months.

Hi all, can someone explain why this is listed as a 'complex investment' on HL, it throws up a warning questionaire when I look to purchase shares here.

Is there something inherent to the share that I need to keep in mind, or is it essentially a generic 'this is a more unsual thing to invest in' warning like it gives you with Swiss shares?

Extra big dividend this month totalling 0.75p per share. Great news for income seekers.

Full details in RNS no point copying here

". . . (Got in for 82.odd so pleased with a 6% future divi at that rate) . . ."

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For clarity, it should really turn out to be more of an 8%++ annual divi for this year based on my initial buy-in price today, but I ignored the special rate applied each October for safety.

On a US monthly divi Income trust, you could clearly see each month with sharp saw-teeth progression of the SP in its XD periods.

I couldn't discern any such regular action with SMIF that would assist economical buying in the XD periods - perhaps because 0.5p just doesn't really register in the hurley-burly of XD periods?

- Anyone figured out a system of taking advantage in such short XD periods when attempting to top-up?

It's also possible to keep repeating the test until you pass. I think it's nonsense because all investments are difficult to understand, even after reading the 200 page financial report a retail Investor is unlikely to work out what isn't being said. Some of the investments that have gone bad for me have been due to things that were hard to predict. One in particular, SONG, was basically due to the investment manager with holding important information and inflating the NAV.

SMIF basically deal in debt instruments and seem to be doing a good job. I could spend weeks researching further and still not being able to predict whether this IT would go wrong.