Hargreaves Lansdown - tomorrow's winners

le_loup

But bond funds often do well in a falling equity market, give an income and don't charge performance fees! I take your point that not all absolute return funds charge them.
My original point was to wonder why some people are happy to pay 20% fees for bettering LIBOR.

Rollinghome

le_loup wrote: »

But bond funds often do well in a falling equity market, give an income and don't charge performance fees! I take your point that not all absolute return funds charge them.
My original point was to wonder why some people are happy to pay 20% fees for bettering LIBOR.

Because back in 2008 when equities and bonds were heading south it was an easy sell for advisers including HL? It was sold because little else could be sold and I believe it was the biggest seller back then.

If I remember, HL were pushing it with the line "With a target return of 10% pa..." and somewhere in brackets "...though not guaranteed". It was the 10% that got noticed.

Time and again we see people saying that they aren't worried about charges if they get out-performance - ignoring that out-performance tends to return to the mean but high charges don't.

StevieJ

I quite like the idea of a performance fee if they drop the standard fee What was that 'cat in hells chance'

sabretoothtigger

Nanpy wrote: »

Anything specific you like about it? It's got a decent 1 yr return, but past performance and all that...

I've about half my portfolio in bog simple L&G trackers, mostly swapping in and out of the fixed interest fund when I get antsy about markets and want to park my money. I like the low transaction charges but the above, obviously, charges along the lines of most managed funds.

A review of the fund : http://www.moneymarketing.co.uk/product-news/new-product-reviews/lg-takes-european-approach-to-absolute-return/1008424.article

I looked through the portfolio and googled each company trying to glimpse their value.
I liked his choices roughly, seems to have a strategy I could appreciate based on infrastructure and well founded assets which is what you'd expect of absolute return low risk type fund surely?

In chrome browser, you can double click a name to select, right click for google and then select the finance tab and in a few seconds you can see what the company is about.

I didnt really recognise the names otherwise, europe is very foreign to me but if that were true in general of other this could make them undervalued.
This is probably not fair when Germany is the largest exporter in the world (discounting chinese trashy type goods). The euro crisis is an opportunity possibly in that the common currency may be causing undervaluation, Germany has for decades, west germany anyway been one of the worlds if not the strongest economy in the world

C_Mababejive

Aberdeen Asia Pacific +17%
Invesco Perp high income +3.77%
Investec high income +5.63%

All in the wealth 150 selection and no performance fees.

sabretoothtigger

C_Mababejive wrote: »

Aberdeen Asia Pacific +17%

I have that one but with the optional add on Japan part. No one likes Japan yet everyone owns some Japanese product, the chinese import from them too so they arent finished yet even with government or currency problems

The other gold star hl choice fund I have is 'Sarasin AgriSar A Class A Accumulation'

Wasnt that great for alot of the year but +16% 2010, theres no doubt food prices are rising much to the ire of the rioting poor.
I think its a great thing to invest in and not popular so far as I can see. Asia is lacking food production, usa has it yet doesnt value it or invest in it greatly.

This is possibly linked to currency changes which have to happen. Food is undervalued because the people who want it are undervalued living in poor countries with undervalued currencies.
unfortunately nobody cares what poor people want, hence apple is the worlds star stock

Its featured this week in fact : http://www.h-l.co.uk/funds/fund-news--and--investment-ideas


Another I used to have on the list is :

Investec Enhanced Natural Resources P Accumulation +16%

He is shorting oil and then holds large amounts of the oil companies on the basis their reserves are undervalued. I think thats a good one still, didnt go anywhere till sept though but didnt drop either
http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/i/investec-enhanced-natural-resources-p-accumulation


Another on the list is GLG tech +24%. Instead I went for a lg tech tracker which underperformed it by more then a few percent

mutley74

sabretoothtigger wrote: »

Another I used to have on the list is :
He is shorting oil and then holds large amounts of the oil companies on the basis their reserves are undervalued. I think thats a good one still, didnt go anywhere till sept though but didnt drop either
http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/i/investec-enhanced-natural-resources-p-accumulation

Just looking at HL charts this fund has significantly provided lower returns over the past 6mths and 12mths compared to JP Morgan Nat resources and First State Global Resouces fund. I will keep an eye on this fund but wont invest in this one for now.

StevieJ

mutley74 wrote: »

Just looking at HL charts this fund has significantly provided lower returns over the past 6mths and 12mths compared to JP Morgan Nat resources and First State Global Resouces fund. I will keep an eye on this fund but wont invest in this one for now.

So basically this fund is adding on performance charges whilst under performing its contemporaries like First State, is that taking the P?

mutley74

StevieJ wrote: »

So basically this fund is adding on performance charges whilst under performing its contemporaries like First State, is that taking the P?

I am suprised this fund has even been placed on HL 150 list, maybe worth an Private message to HL. BTW if anyone sends HL a PM about any fund or question, HL are pretty good in responding within 24hrs and usually give quite good explanations.
(HL do get 10/10 from me on customer service)

sabretoothtigger

Someone asked me about Agrisar performance charges. I replied that it seemed to come to be 15% of any outperformance, which means if they did 10% more then the index they'd add on another 1.5% charge on just profit made which I dont think is massive


JPM performed better, but its not just about performance. Obviously commodities have boomed, if you think thats how it'll always be then stick to JPM I guess because they got that right.
If you think oil could fall then you might want the other fund, I just thought he had distributed it quite squarely

If it was always about picking whatever had just performed well, that'd be pretty simple to do


None of them is perfect because I dont really spot much silver exposure there and it just doubled
JPM, the famous shorters of silver ironically has

Silver Wheaton Corp. 1.56%

which doesnt make silver, it buys production contracts so its a small play on ascending prices