Do You Know the Way to … ?

“In July 2005 Pope Benedict XVI stated during an impromptu address to priests in Aosta that: “The Pope is not an oracle; he is infallible in very rare situations, as we know.” Pope John XXIII once remarked: “I am only infallible if I speak infallibly but I shall never do that, so I am not infallible.”(Wikipedia)

Transport for London’s journey planner is not infallible. Last week we decided to drive to Kenwood because the fastest itinerary proposed by TfL had too many changes of tube and then a bus journey.

TfL website, August 2023.

Next time, if it’s a fine day, this is the route I will take – it will not take much longer and is more interesting and healthier, keeping obesity, heart disease and diabetes at bay. I will take the Piccadilly Line to King’s Cross, change to the northbound Northern Line for six stops and alight at Hampstead Underground Station. Then the healthy bit – walking across Hampstead Heath to Kenwood.

*****

The Telegraph periodically lists twenty-five funds; their “favourite funds to help grow and protect your Isa and pension”. Pleasingly there is one new fund on the list: my old favourite, Personal Assets. Why it has taken them so long to spot such a good long term investment beats me. Of the other twenty-four I only hold shares in one: Scottish Mortgage.

Some are trackers and most of the rest too esoteric or volatile for me. Most but not all. I would willingly hold two of their funds – one for income and one for safety. City of London investment trust was founded in 1861 and is in the FTSE 250. It pays 5.22% dividends annually and has increased that pay-out every year for fifty-six years. It’s not all beer and skittles as it trades at a small premium (+1.47%) to NAV and it’s hard to achieve much capital growth with such huge dividends: up 19% over three years but down 9% over five years. However, up 24% over five years if dividends were re-invested. So that’s the high income fund.

The safety play, not unlike Personal Assets, is Vanguard Life Strategy. “Few options are cheaper and simpler than Vanguard’s LifeStrategy range for passive investors. Each of the five portfolios invests a different portion in shares, from 20 per cent to 100 per cent, with the remainder held in bonds. Both portions of each fund are invested in Vanguard tracker funds. About the simplest and cheapest “multi-asset” fund you can find.” (The Telegraph)

What are the charges, is usually my first question. Vanguard fees are just 0.22% and the fund if invested 60% in equities has returned 21.4% over five years. Of course when proffering investment advice I am not infallible.