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investment trusts
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Used my LISA allowance for this year but left it in cash. Unsure what to do with it.
If on HL consider the discounted Blackrock Consensus 85 or 100 funds depending on your risk profile. If on AJ Bell then lots of choices but consider VLS80 or HSBC FTSE All World depending on your risk profile.Is the Vanguard FTSE All cap a solid choice?
Sure if you are on Vanguard Investor it is one of the best 100% equity options they have. If you are on a platform with more choice there are lower cost options.I was under the impression Vanguard Lifestrategy was overweighted to the UK? Would HSBC, Blackrock or L&G be a better option than the All cap or is it unlikely to make a massive difference?
Depending on your platform you could consider a 2 fund portfolio of say HSBC FTSE All World (0.16%) and Vanguard Global Bond Index Hedged (0.15%) if you don't want the UK equity bias. Or if you don't want to rebalance then those mixed asset funds are fine.
Alex0 -
Agreed. I use investment trusts for that other stuff, however the two that the OP mentioned were global equity
Witan I know holds private equity. Therefore not listed stocks that are available to trackers to invest in.
For those that favour low fees. Private equity funds do cost money to manage . Nature of the beast. You need to be invested in this sector to benefit from the next Facebook or Google etc.0 -
Many of the best performing global funds are unit trusts
If you take Fundsmith and Lindsell Train out of the equation then there are quite a number of global IT's that have performed better than the majority of global OEICS/Unit Trusts. Over a 5 year period the following results apply.
SMT - 136
Monks - 111
Edinburgh Worldwide - 107
F&C - 97.9
On Trustnet there are only 8 global unit trusts out of 319 that have bettered the performance of the above IT's. SMT have produced results approaching Fundsmith & Lindsell Train but over a 10 year period have excelled at 872 - although we can't compare this result to Fundsmith or LT because they have not been established for 10 years yet.0 -
If you take Fundsmith and Lindsell Train out of the equation then there are quite a number of global IT's that have performed better than the majority of global OEICS/Unit Trusts. Over a 5 year period the following results apply.
SMT - 136
Monks - 111
Edinburgh Worldwide - 107
F&C - 97.9
On Trustnet there are only 8 global unit trusts out of 319 that have bettered the performance of the above IT's. SMT have produced results approaching Fundsmith & Lindsell Train but over a 10 year period have excelled at 872 - although we can't compare this result to Fundsmith or LT because they have not been established for 10 years yet.
if you want SMT in near-as-dammit OEIC form it's Baillie Gifford Long Term Global Growth.
For Monks it's Baillie Gifford Global Alpha Growth.
And for Edinburgh Worldwide it's Baillie Gifford Global Discovery0 -
If you take Fundsmith and Lindsell Train out of the equation then there are quite a number of global IT's that have performed better than the majority of global OEICS/Unit Trusts. Over a 5 year period the following results apply.
SMT - 136
Monks - 111
Edinburgh Worldwide - 107
F&C - 97.9
On Trustnet there are only 8 global unit trusts out of 319 that have bettered the performance of the above IT's. SMT have produced results approaching Fundsmith & Lindsell Train but over a 10 year period have excelled at 872 - although we can't compare this result to Fundsmith or LT because they have not been established for 10 years yet.
Yes but...
High returns tend to imply high risk. Between June 2008 and December 2008 SMT dropped in value by about 65%. Should one really be recommeding such funds to inexperienced investors?0 -
If you take Fundsmith and Lindsell Train out of the equation then there are quite a number of global IT's that have performed better than the majority of global OEICS/Unit Trusts. Over a 5 year period the following results apply.
SMT - 136
Monks - 111
Edinburgh Worldwide - 107
F&C - 97.9
On Trustnet there are only 8 global unit trusts out of 319 that have bettered the performance of the above IT's. SMT have produced results approaching Fundsmith & Lindsell Train but over a 10 year period have excelled at 872 - although we can't compare this result to Fundsmith or LT because they have not been established for 10 years yet.
But which 5 or 10 year period are you referring to?
I don't like such vague terms, because they don't describe the market cycle.
If someone says: ''during the 2008 crash'' or ''during the 2009-2017 equity bull market'' that means a lot more.0 -
Brown_Bear wrote: »But which 5 or 10 year period are you referring to?
I don't like such vague terms, because they don't describe the market cycle.
If someone says: ''during the 2008 crash'' or ''during the 2009-2017 equity bull market'' that means a lot more.
That last 5 and 10 year periods on Trustnet.
But Linton is absolutely right in that these IT’s would not be appropriate for the OP and I was not recommending that the OP invests in any of them. I was purely responding to Prism who mentioned that many of the best performing global funds are unit trusts.0 -
If you take Fundsmith and Lindsell Train out of the equation then there are quite a number of global IT's that have performed better than the majority of global OEICS/Unit Trusts. Over a 5 year period the following results apply.
SMT - 136
Monks - 111
Edinburgh Worldwide - 107
F&C - 97.9
On Trustnet there are only 8 global unit trusts out of 319 that have bettered the performance of the above IT's. SMT have produced results approaching Fundsmith & Lindsell Train but over a 10 year period have excelled at 872 - although we can't compare this result to Fundsmith or LT because they have not been established for 10 years yet.
It's easy to pick the winners when you know the results. But maybe you haven't mentioned the best performing ITs for the next 5 years. Buying on league tables is not a good idea. I'm generally dubious about the efficacy of active investing and ITs, but if you are going to use them then they should be purchased because you think the management strategy is good and that it will produce future good returns. So you might think Smith's focused approach is good, or you might like an IT with an strong asian bias. The same goes for developing the asset allocation of any portfolio. ITs need to be researched rather than just following the crowd as everyone who bought Woodford Equity Income knows....but maybe that one will be one of the best in the next 5 years.“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
That last 5 and 10 year periods on Trustnet.
But Linton is absolutely right in that these IT’s would not be appropriate for the OP and I was not recommending that the OP invests in any of them. I was purely responding to Prism who mentioned that many of the best performing global funds are unit trusts.
I do like ITs and I in fact hold some Scottish Mortgage. I am just never quite sure why some people seem to focus just on ITs and others just on unit trusts. Just treat them as a collection of funds to pick from.0 -
Yes but...
High returns tend to imply high risk. Between June 2008 and December 2008 SMT dropped in value by about 65%. Should one really be recommeding such funds to inexperienced investors?
How did stock markets in general react in that period?
How much money did global trackers lose with the demise of the banks? Those not so heavily invested in finance would have performed much better.0
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