Recent sell – PowerShares Listed Private Equity UCITS ETF

Phew, this took a little while but finally I am out of this one.

Some of you might remember my recent post about another PowerShares ETF in my portfolio which I sold. I was so upset about the ‘acquired fees’ that this other ETF charged while being advertised as relatively low cost index fund that I sold it at the time. Then, I also decided that I want to get out of all the other PowerShares ETFs that I owned. I do not want anything to do with PowerShares anymore. Luckily, the only other PowerShares ETF I owned was the PowerShares Listed Private Equity UCITS ETF (ISIN: IE00B23D8Z06). In all fairness, the fees of this particular ETF were not as high as the other one but I just want to get rid of PowerShares. On the other hand, 0.75% of total expense ratio can also not really be considered a passive fee in my view. Either way, on November 20th I placed the sell order with a limit of EUR 9,33. The ETF was then trading slightly below this level. On the 24th, this level was reached but the volume traded was so low that out of my 199 shares that I wanted to sell only 26 were actually sold. Then the ETF price dropped a bit but recovered to my limit of 9,33 again today. Finally, the other 199 shares were sold today. And I am happy that I am out! What I am not happy about is this ‘thrashing about‘. Usually, I want to hold on to my investments for the long term but I really don’t like the fees that PowerShares and Invesco, who is behind PowerShares charge. As you can make up from this and the other ETF article referred to above, I am pretty much done with PowerShares by Invesco. I guess being unhappy about the costs of your ETF should be included in the list of when it is OK to sell.

Anyhow, time for a post mortem analysis of my little love affair with PowerShares Listed Private Equity UCITS ETF turned out. A love affair is the right term here I think because I only bought those 225 shares on the 26th of September for EUR 8.795 a piece. The total cost including transaction costs of EUR 12.47 or 0.6% was therefore EUR 1,991.35.

On October 31, I was a paid an after tax dividend of EUR 23.99 or 0.11 per share.

Today, the last bit of my position was sold. The total value sold was 2,099.25 and after transaction costs of EUR 7.10 or 0.34% (my broker lowered his transaction costs in the meantime) a total of 2,092.15 found its way into my bank account. So, doing the math, I spent 1,991.35 and received 2,092.15 from the sale plus 23.99 in dividends. This translates into a net cash inflow of EUR 124.80 or a not annualized total return of 6.3% from this position .

To conclude, this was a fine round trip but I am glad I have nothing to do with PowerShares anymore. Luckily, the sale of this position does not impact my projected dividend income or my goals for 2017, as I already excluded any dividend income from this ETF in my calculation.

 

Disclaimer: None of the content of this site is to be considered investment advice. Readers have to form their own opinion about which investments are right for them and take full responsibility for their own actions.

 

6 thoughts on “Recent sell – PowerShares Listed Private Equity UCITS ETF

    • Hi TeamCF,
      Thank you for your comment. I agree the return is quite alright for this little ‘affair’ 🙂
      I have some ideas on where to invest the cash from the recent sell transactions but I am not in a hurry to reinvest.
      Thanks for stopping by.

      Like

  1. Great move, those fees are really high for a “passive” fund.

    I feel your pain on the limit order issue. For lower liquidity names, I typically try to select the “all or nothing” option for selling (or buying) shares. That way I sell/buy them all at once and don’t have to incur another trading fee if I don’t get all the shares for the entire trade in one day.

    Like

    • Hi Par,
      Thank you for your comment. I typically try limits. Sometimes they work, sometimes they don’t. This time it worked although I had to wait a few days. Another example was with the Trump Bump. I had a limit buy order which just did not get hit. If I would have been a little less greasy I could have made quite a bit of money.
      Usually however I set limits not too far away from current price.
      Thank you for stopping by.

      Like

    • Hi DL,
      I agree. However, I don’t mind paying an active fee for an active fund if I like the manager’s process. Paying a high fee for a passive product is totally insane. I still can’t believe this other PowerShares roduct charged about 3%.
      Thank you for stopping by.

      Like

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