Lindsell Train on iWeb

Dird

SeniorSam wrote: »

Bothe Lindsell Train Global Equity and UK Equity funds have been performing very well since I bought in in April. Get in on them as soon as you can.

Plenty have~

Lindsell had this to say:
Unfortunately Halifax have a particular view when it comes to classifying funds in regards to whether they are clean or not clean and they in the past have viewed our funds as not qualifying in offering !!!8216;clean!!!8217; share classes.

Although the B share for the Lindsell Train Global Equity Fund is our !!!8220;clean!!!8221; share class, with a low management fee (0.65% pa) and no bundled commissions, and we treat it as our post RDR offering , Halifax seem to take a unique view of it.

Because the share class IN THEORY could apply an initial charge of up to 4% for new investors (see attached KIID document), Halifax have historically claimed the share class is not clean and so have therefore blocked its availability.

We have never applied this initial charge, all deals are accepted at a NAV price, we have tried to confirm this to Halifax in the past but they seem reluctant to budge from this stance (which within the industry seems to be quite an isolated view !!!8211; the B share being happily available through plenty of other fund platforms).

Chickereeeee

Dird wrote: »

iWeb had this to say:

It looks like that is what the fund manager has to say, rather than iWeb?


Anyhow, if the fund manager has no intention of applying the initial charge, why do they not remove it, and everybody is happy?


K

Dird

Chickereeeee wrote: »

It looks like that is what the fund manager has to say, rather than iWeb?

Yeah it was actually. iWeb just said they wouldn't reveal their criteria

DennisTenus

Well I actually came to the forum today to ask this very question!

However.... I'm confused by some of the responses...

masonic wrote: »

I was thinking of II. I agree iWeb is not the place to go if you want to invest in OEICs, I only use it for ITs and ETFs.

What are OEICs? and ITs? Is LTGE an OEIC? and Fundsmith etc?

SeniorSam wrote: »

Bothe Lindsell Train Global Equity and UK Equity funds have been performing very well since I bought in in April. Get in on them as soon as you can. I am with HL and there factshet ill show the discount on charges they make.

Yes they have.... I'm up over 10% with LTGE that I hold in HL.... but isn't it therefore a bad time to invest more in it? I'd rather invest more when it's down than up....

Dird wrote: »

Plenty have~

iWeb had this to say:
Unfortunately Halifax have a particular view when it comes to classifying funds in regards to whether they are clean or not clean and they in the past have viewed our funds as not qualifying in offering ‘clean’ share classes.

Although the B share for the Lindsell Train Global Equity Fund is our “clean” share class, with a low management fee (0.65% pa) and no bundled commissions, and we treat it as our post RDR offering , Halifax seem to take a unique view of it.

Because the share class IN THEORY could apply an initial charge of up to 4% for new investors (see attached KIID document), Halifax have historically claimed the share class is not clean and so have therefore blocked its availability.

We have never applied this initial charge, all deals are accepted at a NAV price, we have tried to confirm this to Halifax in the past but they seem reluctant to budge from this stance (which within the industry seems to be quite an isolated view – the B share being happily available through plenty of other fund platforms).

Not sure I understand any of that... Sorry! What do you mean clean or not clean?? Whats RDR?

I've got funds in HL and IWeb. I like HL, it's just the 0.45% cost that annoys me so was looking for somewhere else for my ISA S&S 20K this year.... I think it's got to be somewhere like HL with a % charge so I can buy little amount here and there when it drops which is what I did with HL over the last year. I was considering Charles Stanley Direct as they are 0.25% but I suppose someone is going to tell me that they don't discount funds OCF so is it actually better I continue on with HL?!

Alexland

DennisTenus wrote: »

What are OEICs? and ITs? Is LTGE an OEIC? and Fundsmith etc?

Yes OEICs are just common funds - not Shares, ETFs or ITs which are exchange traded.

https://www.moneyadviceservice.org.uk/en/articles/unit-trusts-and-open-ended-investment-companies-oeics

DennisTenus wrote: »

I'm up over 10% with LTGE that I hold in HL.... but isn't it therefore a bad time to invest more in it? I'd rather invest more when it's down than up....

So would everyone - but just because it has gone up recently isn't a reason to make a decision. You need to consider the future prospects of the portfolio and how quality shares will be positioned as we head towards the end of the market cycle.

DennisTenus wrote: »

What do you mean clean or not clean?? Whats RDR?

http://www.morningstar.co.uk/uk/news/96825/rdr-the-basics.aspx

DennisTenus wrote: »

I was considering Charles Stanley Direct as they are 0.25% but I suppose someone is going to tell me that they don't discount funds OCF so is it actually better I continue on with HL?!

CSD are unlikely to get the level of discounts that HL achieve however it depends on what you are invested in. Do a spreadsheet and model the difference in total ongoing charges for your portfolio value.

Alex

Dird

Chickereeeee wrote: »

Anyhow, if the fund manager has no intention of applying the initial charge, why do they not remove it, and everybody is happy?

Apparently it's not an initial charge:

"The 4% potential charge has been left in place as it is a way of future proofing the Fund as it may be used to control asset flows."

So it's like those property investment funds that prevented people withdrawing their investments~ if LT goes through a bad patch & people start a run on the fund then they'll introduce the 4% withdrawal fee to prevent some people from wanting to or to milk the cow once more people closing the fund

londoninvestor

Dird wrote: »

Yeah it was actually. iWeb just said they wouldn't reveal their criteria

I have it in writing from Lloyds (part of the same underlying HSDL platform) that they will indeed not offer any fund share class that has an initial charge in its KIID.

Real initial charges seem to be a relic now - you'd have to go out of your way to actually pay one, so as Dird says, the most likely reason to stick to "we charge x% but discount it to 0% in practically every circumstance" is to have a convenient lever to pull if they want to soft-close in future.

londoninvestor

Dird wrote: »

So it's like those property investment funds that prevented people withdrawing their investments~ if LT goes through a bad patch & people start a run on the fund then they'll introduce the 4% withdrawal fee to prevent some people from wanting to or to milk the cow once more people closing the fund

The KIID has a 4% entry charge but no exit charge, so this doesn't give them a way to prevent outflows. It's all about inflows, i.e. they can "soft close" the fund if they believe it's getting too big. That happened with one of the First State (now Stewart) emerging markets funds that I held.

DennisTenus

Alexland wrote: »

CSD are unlikely to get the level of discounts that HL achieve however it depends on what you are invested in. Do a spreadsheet and model the difference in total ongoing charges for your portfolio value. Alex

So example, if a fund OCF with CSD is 1% and it's discounted to 0.50% with HL it's actually least expensive to hold with HL once you add on the 0.45%?

Never considered this before, a lot of people here often say how expensive HL is and that it's most expensive but it actually really depends in what and how much you have invested....

Alexland

I am not sure if HL have any funds discounted greater than their platform fee but it certainly helps especially if you have other reasons to be with HL such as the limited choice in the LISA market.