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  • FIRST POST
    • MPN
    • By MPN 13th Jun 17, 4:23 PM
    • 236Posts
    • 79Thanks
    MPN
    Lindsell Train GE & Fundsmith
    • #1
    • 13th Jun 17, 4:23 PM
    Lindsell Train GE & Fundsmith 13th Jun 17 at 4:23 PM
    Does anybody hold Lindsell Train Global Equity and Fundsmith in the global part of their portfolio?

    My brother-in-law holds both and although I mentioned that they hold some of the same funds ie. Unilever, Diageo, Pepsico, Paypal therefore he's doubling up on these holdings, he still feels they are different enough to compliment each other?

    I know Lindsell Train has a more diverse geographical spread than Fundsmith ie. US - 33%, UK - 27%, Japan - 23% and Eurozone - 15% - but is this enough to consider holding them both in your global portfolio? I personally don't think so (but I could be totally wrong hence the thread).

    Any thoughts or further observations please?
Page 1
    • TBC15
    • By TBC15 13th Jun 17, 4:55 PM
    • 226 Posts
    • 79 Thanks
    TBC15
    • #2
    • 13th Jun 17, 4:55 PM
    • #2
    • 13th Jun 17, 4:55 PM
    Does anybody hold Lindsell Train Global Equity and Fundsmith in the global part of their portfolio?

    My brother-in-law holds both and although I mentioned that they hold some of the same funds ie. Unilever, Diageo, Pepsico, Paypal therefore he's doubling up on these holdings, he still feels they are different enough to compliment each other?

    I know Lindsell Train has a more diverse geographical spread than Fundsmith ie. US - 33%, UK - 27%, Japan - 23% and Eurozone - 15% - but is this enough to consider holding them both in your global portfolio? I personally don't think so (but I could be totally wrong hence the thread).

    Any thoughts or further observations please?
    Originally posted by MPN
    I’d like to know what other funds your brother in law is invested in.
    • stringer_bell
    • By stringer_bell 13th Jun 17, 7:50 PM
    • 383 Posts
    • 50 Thanks
    stringer_bell
    • #3
    • 13th Jun 17, 7:50 PM
    • #3
    • 13th Jun 17, 7:50 PM
    Does anybody hold Lindsell Train Global Equity and Fundsmith in the global part of their portfolio?

    My brother-in-law holds both and although I mentioned that they hold some of the same funds ie. Unilever, Diageo, Pepsico, Paypal therefore he's doubling up on these holdings, he still feels they are different enough to compliment each other?

    I know Lindsell Train has a more diverse geographical spread than Fundsmith ie. US - 33%, UK - 27%, Japan - 23% and Eurozone - 15% - but is this enough to consider holding them both in your global portfolio? I personally don't think so (but I could be totally wrong hence the thread).

    Any thoughts or further observations please?
    Originally posted by MPN
    got Lindsell in my General investment account, Fundsmith in my SIPP and scottish mortgage in my ISA
    • MPN
    • By MPN 14th Jun 17, 8:49 AM
    • 236 Posts
    • 79 Thanks
    MPN
    • #4
    • 14th Jun 17, 8:49 AM
    • #4
    • 14th Jun 17, 8:49 AM
    got Lindsell in my General investment account, Fundsmith in my SIPP and scottish mortgage in my ISA
    Originally posted by stringer_bell
    Well I suppose it will be interesting to see how that spread works over a number of years but they are all good funds imo.
    • StellaN
    • By StellaN 14th Jun 17, 12:01 PM
    • 187 Posts
    • 55 Thanks
    StellaN
    • #5
    • 14th Jun 17, 12:01 PM
    • #5
    • 14th Jun 17, 12:01 PM
    got Lindsell in my General investment account, Fundsmith in my SIPP and scottish mortgage in my ISA
    Originally posted by stringer_bell
    I also hold Scottish Mortgage IT and Fundsmith as my global funds but do not hold Lindsell Train Global Equity because its too similar to Fundsmith except for the Japanese element of the portfolio.
    • ChesterDog
    • By ChesterDog 14th Jun 17, 12:37 PM
    • 800 Posts
    • 1,444 Thanks
    ChesterDog
    • #6
    • 14th Jun 17, 12:37 PM
    • #6
    • 14th Jun 17, 12:37 PM
    I also hold all three of these, as a split of my total global equity holdings.

    It's true that there are overlaps and duplications within, but if all the money was in just one then the allocation to each of the underlying investments would potentially be even greater.

    Also, I am a great believer in choosing investments carefully and then leaving them alone for a long, long time. If there is significant overlap now, that may not always be the case.
    I am one of the "Dogs of the Index".
    • StellaN
    • By StellaN 14th Jun 17, 1:47 PM
    • 187 Posts
    • 55 Thanks
    StellaN
    • #7
    • 14th Jun 17, 1:47 PM
    • #7
    • 14th Jun 17, 1:47 PM
    I also hold all three of these, as a split of my total global equity holdings.

    It's true that there are overlaps and duplications within, but if all the money was in just one then the allocation to each of the underlying investments would potentially be even greater.

    Also, I am a great believer in choosing investments carefully and then leaving them alone for a long, long time. If there is significant overlap now, that may not always be the case.
    Originally posted by ChesterDog
    That's an interesting viewpoint and, I must admit, something I had not taken into consideration.

    Maybe the OP's brother in law is comfortable to hold both funds for this reason even though the OP did say he personally didn't think he should.
    • MPN
    • By MPN 14th Jun 17, 4:15 PM
    • 236 Posts
    • 79 Thanks
    MPN
    • #8
    • 14th Jun 17, 4:15 PM
    • #8
    • 14th Jun 17, 4:15 PM
    That's an interesting viewpoint and, I must admit, something I had not taken into consideration.

    Maybe the OP's brother in law is comfortable to hold both funds for this reason even though the OP did say he personally didn't think he should.
    Originally posted by StellaN
    I always thought it is best to concentrate on one fund in each sector so therefore just go for one global fund, however it seems people are happy to hold 2/3 as the posts above imply.

    My brother in law tends to hold 2 funds in each geographical section for instance in Europe he holds TR European Growth IT and Henderson European Focus IT.

    At the moment I only play with my ISA portfolio but my pension is still with a financial advisor.
    • MonroeM
    • By MonroeM 16th Jun 17, 5:34 PM
    • 114 Posts
    • 32 Thanks
    MonroeM
    • #9
    • 16th Jun 17, 5:34 PM
    • #9
    • 16th Jun 17, 5:34 PM
    I always thought it is best to concentrate on one fund in each sector so therefore just go for one global fund, however it seems people are happy to hold 2/3 as the posts above imply.

    My brother in law tends to hold 2 funds in each geographical section for instance in Europe he holds TR European Growth IT and Henderson European Focus IT.

    At the moment I only play with my ISA portfolio but my pension is still with a financial advisor.
    Originally posted by MPN
    The European IT's you mentioned are quite high risk compared to OEIC's. Nothing wrong with holding 2 funds in my opinion though, I hold 2 funds for Europe Marlborough Multi Cap and Baillie Gifford European.
    • MPN
    • By MPN 17th Jun 17, 4:32 PM
    • 236 Posts
    • 79 Thanks
    MPN
    The European IT's you mentioned are quite high risk compared to OEIC's. Nothing wrong with holding 2 funds in my opinion though, I hold 2 funds for Europe Marlborough Multi Cap and Baillie Gifford European.
    Originally posted by MonroeM
    Not really sure if IT's are any riskier if chosen wisely. I'm quite a fan of IT's so I hold a mixture of them and OEIC's in my ISA portfolio.
    • Thrugelmir
    • By Thrugelmir 17th Jun 17, 5:43 PM
    • 55,870 Posts
    • 49,241 Thanks
    Thrugelmir
    A number of my IT holdings have cross over. Simply a result of buying a particular trust because it's attractive to purchase at the time. With around 25-30 holdings at only one time. The concentration in anyone particular share is a very very low %. Which is neither going to cause a catastrophic loss nor a huge windfall gain.
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • Sally57
    • By Sally57 18th Jun 17, 2:00 PM
    • 87 Posts
    • 18 Thanks
    Sally57
    got Lindsell in my General investment account, Fundsmith in my SIPP and scottish mortgage in my ISA
    Originally posted by stringer_bell
    Not sure about holding 3 global funds in a portfolio especially with the crossover with LT and Fundsmith? Also, Scottish Mortgage is very high risk with so much invested in technology.
    • MPN
    • By MPN 19th Jun 17, 2:28 PM
    • 236 Posts
    • 79 Thanks
    MPN
    Not sure about holding 3 global funds in a portfolio especially with the crossover with LT and Fundsmith? Also, Scottish Mortgage is very high risk with so much invested in technology.
    Originally posted by Sally57
    I tend to agree but If I was going to hold 2 global funds then I'd be tempted to go with either Fundsmith or Lindsell Train and Scottish Mortgage IT because the asset allocation would then be more balanced.
    • Tony12345
    • By Tony12345 30th Oct 17, 5:52 PM
    • 14 Posts
    • 1 Thanks
    Tony12345
    What about old mutual global equity, I have decided to hold 3 global funds 2 being the ones you talk about the other being Old Mutual Equity well will been soon or another fund
    Last edited by Tony12345; 30-10-2017 at 6:00 PM.
    • pip895
    • By pip895 30th Oct 17, 7:42 PM
    • 430 Posts
    • 233 Thanks
    pip895
    I have Vanguard FTSE Developed World ex-UK Equity, Fundsmith and a smaller holding in Standard Life Inv Global Smaller Companies. No more than two in any wrapper though.
    • aroominyork
    • By aroominyork 30th Oct 17, 8:00 PM
    • 277 Posts
    • 61 Thanks
    aroominyork
    Similar to StellaN, I think Chester Dog's point is good, that some diversification / risk management within a sector has benefits compared to doubling up on any one fund. I kinda hold both: I hold Fundsmith and LT UK (I get Japan through BGFD). My other global fund is Baillie Gifford Global Alpha Growth, because I wanted some tech but not as much as SMT and not in an IT, so I picked this fund which is essentially an OEIC version of Monks.
    Last edited by aroominyork; 30-10-2017 at 8:13 PM.
    • Prism
    • By Prism 4th Nov 17, 4:57 PM
    • 12 Posts
    • 6 Thanks
    Prism
    I think holding both is fine. I would say only about 15% is duplicated between the two. Personally I hold Fundsmith and then top that up with some extra tech with the L&G global technology index trust. A bit of Japan and China sprinkled in for good measure
    • aroominyork
    • By aroominyork 5th Nov 17, 9:01 PM
    • 277 Posts
    • 61 Thanks
    aroominyork
    It's curious that every time a Fundsmith / Lindsell Train discussion starts, SMT gets drawn into it. I was guilty of this myself a while back (when studying Investment 101; I have now moved on to Investment 101.5) but not one of SMT's top ten holdings figures in either of Fundsmith's or LT's. SMT is a very different fund, and there are plenty more very different funds too.
    • ArchBair
    • By ArchBair 6th Nov 17, 11:34 AM
    • 48 Posts
    • 11 Thanks
    ArchBair
    My other global fund is Baillie Gifford Global Alpha Growth, because I wanted some tech but not as much as SMT and not in an IT, so I picked this fund which is essentially an OEIC version of Monks.
    Originally posted by aroominyork
    I now hold 60% of my investment portfolio in 2 global IT's Witan and SMT. At the moment I am considering splitting my holding in SMT with Monks mainly because Monks is slightly lower risk but holds a larger amount of holdings. Not sure if holding 3 global IT's is the right thing to do and I realise there is a lot of crossover between SMT and Monks so the other option would be to totally switch from SMT to Monks?
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