Lindsell Train

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Robie
Robie Posts: 150 Forumite
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in Savings & investments
Hi

I previously held Lindsell Train Global Equity Income Fund in my portfolio. Since then I had to sell it (so as to not to pay high exit fees) when I moved from HL to IWeb.

I am thinking of adding it to my portfolio again so:
    Should I buy Lindsell Train Global Equity Income Fund or Lindsell Train Investment Trust plc (The) (LTI)?
[LIST=2]What is the difference between them?[/LIST]

Thanks.
Robie
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Comments

  • ColdIron
    ColdIron Posts: 9,049 Forumite
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    You mean what's the difference between a global OEIC with an ongoing charge of about 0.75% and a UK focused investment trust with an OCF of over 3% trading at a premium above 20%?

    I would suggest that reading their respective fact sheets would be the very least you could do before parting with any cash
  • Robie
    Robie Posts: 150 Forumite
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    edited 6 October 2017 at 4:13PM
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    ColdIron wrote: »
    You mean what's the difference between a global OEIC with an ongoing charge of about 0.75% and a UK focused investment trust with an OCF of over 3% trading at a premium above 20%?

    I would suggest that reading their respective fact sheets would be the very least you could do before parting with any cash

    Thanks Coldy.

    You are correct, I should have done some reading. Jumped the gun before reading up on it.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    I really think people should avoid investment trusts. Their discount/premium, high fees and freedom to use borrowing make them a bit opaque for the average investor.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • chiang_mai
    chiang_mai Posts: 156 Forumite
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    I'm curious why you think you would have incurred exit fees since the prospectus only allows for a discretionary maximum of 2% at times of net subscriptions, aka a run on the fund?
  • Alexland
    Alexland Posts: 9,653 Forumite
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    The OP is probably refering to the HL in specie transfer charge rather than an exit charge on the fund itself.
  • planteria
    planteria Posts: 5,321 Forumite
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    i'd have thought so too. Robie might want to confirm.
  • MPN
    MPN Posts: 365 Forumite
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    bostonerimus wrote: »
    I really think people should avoid investment trusts. Their discount/premium, high fees and freedom to use borrowing make them a bit opaque for the average investor.

    A lot of forum users on here invest in IT's so maybe it's not a great policy advising people in such general terms to 'avoid IT's'!
  • jimjames
    jimjames Posts: 17,619 Forumite
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    MPN wrote: »
    A lot of forum users on here invest in IT's so maybe it's not a great policy advising people in such general terms to 'avoid IT's'!

    Totally agree. ITs definitely have a place in most portfolios, discounts are an advantage not a negative. What's not to like about buying £1 of assets for 90p!
    Remember the saying: if it looks too good to be true it almost certainly is.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    jimjames wrote: »
    Totally agree. ITs definitely have a place in most portfolios, discounts are an advantage not a negative. What's not to like about buying £1 of assets for 90p!
    True. But those ITs can still move to an even larger discount by the time you want to sell. If the £1 halves in value and the public lose faith in the strategy even further, your selling point when you want to get out might only be 40p, which is not a great return on your 90p cost.

    And for the one specifically mentioned on this thread (Lindsell Train) a major component of the portfolio is an investment in an unlisted company (the LT management company itself) whose 'fair value' is inherently difficult to assess even if you had all the private company data - rather than just the limited public data you can actually access - so it is tricky to come up with a reasonable personal assessment of NAV before you even start to decide whether you are happy to pay the implied premium.
  • TBC15
    TBC15 Posts: 1,452 Forumite
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    edited 27 April 2018 at 6:21PM
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    Isn,t Lindsell train IT the one Nick said he wouldn't buy at the moment?
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