Which Vanguard fund

bowlhead99

RomfordNavy wrote: »

Thanks I didn't realise that, as it is not listed on iWeb I could not find any way of establishing the premium/discount over NAV. Neither Trustnet not Morning Star, as far as I can tell, show that.

It's a mistake by Dairy Queen if she means the Lindsell Train open-ended fund (with provision for entry charges or trail commission) that you are talking about being unavailable on IWeb. The Lindsell Train open ended funds' dealing prices are all at -or very close to- NAV ; when you want to 'buy' (subscribe for new shares) the manager creates new shares and you buy them at NAV, and when you want to sell (redeem some or all of your holding) you get paid out at NAV when the manager takes them back and cancels them.

So, trustnet and morningstar don't show a discount or premium because there isn't one for their global equity or UK equity or Japan equity funds.

Lindsell Train also have an "Investment trust" (Lindsell Train investment trust plc) which is a closed-ended vehicle which doesn't create new shares just because someone wants to buy in. As it's a plc traded on the stock exchange, price moves every minute based on supply and demand, the price at which it changes hands on the market can diverge significantly from the last published value of the underlying assets it holds. Especially because the biggest investment it holds is some shares in the LT management company, which is a private company without a published price, and therefore a very subjective valuation anyway. So there can be a big apparent premium between the share price of the investment trust and its published NAV.

So, perhaps Dairy Queen was talking about the investment trust (which has a large premium to NAV which could narrow in the future), rather than the open ended fund(s) which you were meaning (which don't). Or perhaps she thought the open ended funds have a premium, which is wrong Either way, that investment trust premium is nothing to do with the open-ended funds you are likely to have been considering.

DairyQueen

bowlhead99 wrote: »

It's a mistake by Dairy Queen if she means the Lindsell Train open-ended fund (with provision for entry charges or trail commission) that you are talking about being unavailable on IWeb. The Lindsell Train open ended funds' dealing prices are all at -or very close to- NAV ; when you want to 'buy' (subscribe for new shares) the manager creates new shares and you buy them at NAV, and when you want to sell (redeem some or all of your holding) you get paid out at NAV when the manager takes them back and cancels them.

So, trustnet and morningstar don't show a discount or premium because there isn't one for their global equity or UK equity or Japan equity funds.

Lindsell Train also have an "Investment trust" (Lindsell Train investment trust plc) which is a closed-ended vehicle which doesn't create new shares just because someone wants to buy in. As it's a plc traded on the stock exchange, price moves every minute based on supply and demand, the price at which it changes hands on the market can diverge significantly from the last published value of the underlying assets it holds. Especially because the biggest investment it holds is some shares in the LT management company, which is a private company without a published price, and therefore a very subjective valuation anyway. So there can be a big apparent premium between the share price of the investment trust and its published NAV.

So, perhaps Dairy Queen was talking about the investment trust (which has a large premium to NAV which could narrow in the future), rather than the open ended fund(s) which you were meaning (which don't). Or perhaps she thought the open ended funds have a premium, which is wrong Either way, that investment trust premium is nothing to do with the open-ended funds you are likely to have been considering.

Thanks for the correction BH. I was referring to LTI (Lindell Train Investment Trust Plc). re: large premium to NAV. Apologies for confusion.

RomfordNavy

bowlhead99 wrote: »

It's a mistake by Dairy Queen if she means the Lindsell Train open-ended fund (with provision for entry charges or trail commission) that you are talking about being unavailable on IWeb. The Lindsell Train open ended funds' dealing prices are all at -or very close to- NAV ; when you want to 'buy' (subscribe for new shares) the manager creates new shares and you buy them at NAV, and when you want to sell (redeem some or all of your holding) you get paid out at NAV when the manager takes them back and cancels them.

So, trustnet and morningstar don't show a discount or premium because there isn't one for their global equity or UK equity or Japan equity funds.

Lindsell Train also have an "Investment trust" (Lindsell Train investment trust plc) which is a closed-ended vehicle which doesn't create new shares just because someone wants to buy in. As it's a plc traded on the stock exchange, price moves every minute based on supply and demand, the price at which it changes hands on the market can diverge significantly from the last published value of the underlying assets it holds. Especially because the biggest investment it holds is some shares in the LT management company, which is a private company without a published price, and therefore a very subjective valuation anyway. So there can be a big apparent premium between the share price of the investment trust and its published NAV.

So, perhaps Dairy Queen was talking about the investment trust (which has a large premium to NAV which could narrow in the future), rather than the open ended fund(s) which you were meaning (which don't). Or perhaps she thought the open ended funds have a premium, which is wrong Either way, that investment trust premium is nothing to do with the open-ended funds you are likely to have been considering.

Very helpful, thanks bowlhead99 for your detailed explanation.

RomfordNavy

Notice that it is only the Class A Lindsell Train Global Equity Fund which is dirty, Classes B-E are clean.

However does that mean that I could invest say £20k in Class B units or am I limited to a minimum investment of £150k?

Why in the world would Lindsell Train keep the class-A units dirty when all others are clean?

ColdIron

The minimum investment values quoted by the fund itself don't usually apply if you invest via a platform. Depending on your platform you can probably invest £500/£100 if you want. The old dirty classes are for people who invested before clean classes were available and haven't converted or switched yet

RomfordNavy

Been looking further into these Lindsell Train funds. However their Global Equity Class B (ISIN: IE00B3NS4D25) has a 4% entry fee so for that reason is considered a 'Dirty' fund and hence not available to trade on iWeb.

talexuser

The Lindsell Train investment trust is available on iWeb, but even the chairman of the trust advises against buying in at these sort of premium levels! Perhaps they expect a correction soon?

RomfordNavy

talexuser wrote: »

The Lindsell Train investment trust is available on iWeb, but even the chairman of the trust advises against buying in at these sort of premium levels! Perhaps they expect a correction soon?

Shares in their Company are available but not the actual underlying Investment Funds.

talexuser

Read up on the difference between Investment Trusts and Open Ended Investment Companies, then swap some words around to make that sentence make sense.

RomfordNavy

talexuser wrote: »

Read up on the difference between Investment Trusts and Open Ended Investment Companies, then swap some words around to make that sentence make sense.

If I have understood this correctly shares in Lindsell Train Investment Trust Plc (LTI.L), the Company's closed-ended mutual fund (of various funds), are available to trade on iWeb albeit currently at a premium to NAV.
However the underlying individual open-ended funds such as "Lindsell Train Global Equity Fund - Class B" are not available to trade due to this 4% entry charge.