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  • FIRST POST
    • Robie
    • By Robie 6th Oct 17, 3:21 PM
    • 131Posts
    • 28Thanks
    Robie
    Lindsell Train
    • #1
    • 6th Oct 17, 3:21 PM
    Lindsell Train 6th Oct 17 at 3:21 PM
    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:
    1. Should I buy Lindsell Train Global Equity Income Fund or
      Lindsell Train Investment Trust plc (The) (LTI)?
    1. What is the difference between them?

    Thanks.
    Robie
    Save £8k in 2013, Num 046, £5000/£8000 (received £2000 unexpectedly from someone)
Page 1
    • ColdIron
    • By ColdIron 6th Oct 17, 3:57 PM
    • 3,673 Posts
    • 4,420 Thanks
    ColdIron
    • #2
    • 6th Oct 17, 3:57 PM
    • #2
    • 6th Oct 17, 3:57 PM
    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
    • By Robie 6th Oct 17, 4:01 PM
    • 131 Posts
    • 28 Thanks
    Robie
    • #3
    • 6th Oct 17, 4:01 PM
    • #3
    • 6th Oct 17, 4:01 PM
    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
    Originally posted by ColdIron
    Thanks Coldy.

    You are correct, I should have done some reading. Jumped the gun before reading up on it.
    Last edited by Robie; 06-10-2017 at 4:13 PM.
    Save £8k in 2013, Num 046, £5000/£8000 (received £2000 unexpectedly from someone)
    • bostonerimus
    • By bostonerimus 6th Oct 17, 6:15 PM
    • 1,230 Posts
    • 685 Thanks
    bostonerimus
    • #4
    • 6th Oct 17, 6:15 PM
    • #4
    • 6th Oct 17, 6:15 PM
    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.
    Misanthrope in search of similar for mutual loathing
    • chiang mai
    • By chiang mai 6th Oct 17, 11:36 PM
    • 88 Posts
    • 17 Thanks
    chiang mai
    • #5
    • 6th Oct 17, 11:36 PM
    • #5
    • 6th Oct 17, 11:36 PM
    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
    • By Alexland 7th Oct 17, 7:22 AM
    • 782 Posts
    • 476 Thanks
    Alexland
    • #6
    • 7th Oct 17, 7:22 AM
    • #6
    • 7th Oct 17, 7:22 AM
    The OP is probably refering to the HL in specie transfer charge rather than an exit charge on the fund itself.
    • planteria
    • By planteria 8th Oct 17, 10:03 AM
    • 4,876 Posts
    • 1,069 Thanks
    planteria
    • #7
    • 8th Oct 17, 10:03 AM
    • #7
    • 8th Oct 17, 10:03 AM
    i'd have thought so too. Robie might want to confirm.
    • MPN
    • By MPN 8th Oct 17, 4:07 PM
    • 238 Posts
    • 80 Thanks
    MPN
    • #8
    • 8th Oct 17, 4:07 PM
    • #8
    • 8th Oct 17, 4:07 PM
    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.
    Originally posted by bostonerimus
    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
    • By jimjames 8th Oct 17, 8:17 PM
    • 12,240 Posts
    • 10,778 Thanks
    jimjames
    • #9
    • 8th Oct 17, 8:17 PM
    • #9
    • 8th Oct 17, 8:17 PM
    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'!
    Originally posted by MPN
    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
    • By bowlhead99 8th Oct 17, 9:51 PM
    • 7,000 Posts
    • 12,612 Thanks
    bowlhead99
    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!
    Originally posted by jimjames
    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
    • By TBC15 9th Oct 17, 6:52 PM
    • 265 Posts
    • 87 Thanks
    TBC15
    Isn’t Lindsell train IT the one Nick said he wouldn’t buy at the moment?
    Last edited by TBC15; 09-10-2017 at 6:55 PM. Reason: spelling
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