Lindsell Train IT 80% Premium to NAV

Apodemus

bostonerimus wrote: »

80% premium is silly, as is investing in unlisted stuff as Woodford owners have found. I have a fundamental issue with buying anything at a premium because it is popular so those type of closed end funds are off the table for me.

I’m not sure investing in “unlisted stuff” silly - at least not as a blanket statement. Some of the very best companies in the world are unlisted. Some that i’d love to have investments in. Others that have been taken private and doing very well in private hands. For most investors, the only way to get a stake in these is through some form of collective investment vehicle. That comes with risks, one of which is judging how valuations are reached.

Thrugelmir

Apodemus wrote: »

I’m not sure investing in “unlisted stuff” silly - at least not as a blanket statement. Some of the very best companies in the world are unlisted.

The number of listed companies has been in decline for some decades now.

[Deleted User]

Just to clarify - we're not in any way commenting on the fund here, are we?


https://www.charles-stanley-direct.co.uk/ViewFund?Sedol=B3NS4D2%20%20%20%20&Name=Lindsell_Train_Global_Equity_B_GBP&Isin=IE00B3NS4D25




I've been giving serious consideration to this fund - thinking of about 10% of my SIPP investment.

ColdIron

No, that's his OEIC, it's the IT under discusssion

[Deleted User]

ColdIron wrote: »

No, that's his OEIC, it's the IT under discussion

Any thoughts on the fund? Not that I'm after financial advice - heaven forbid!
I was wondering if the somewhat negative assessment of the trust might propagate into the management of the fund.

ColdIron

It's a popular fund. The issue with the IT is it's high premium to NAV. OEICs do not trade at a premium or discount so not a factor for you

Aminatidi

I don't see why it should.

Keep in mind you'd only buy the trust if you wanted to own shares in Lindsell Train itself.

The fund is just quality brands and companies and is unaffected by premiums and discounts.

londoninvestor

Also note there's another investment trust that is managed by Lindsell Train. It's called Finsbury Growth & Income (ticker FGT).

As an investment trust, this can trade at a premium or discount (currently it's about 0.2% premium) and can use gearing. But unlike LTI it doesn't own a stake in LT's fund management business. It holds a pretty similar portfolio to the Lindsell Train UK Equity OEIC.

stphnstevey

londoninvestor wrote: »

Also note there's another investment trust that is managed by Lindsell Train. It's called Finsbury Growth & Income (ticker FGT).

As an investment trust, this can trade at a premium or discount (currently it's about 0.2% premium) and can use gearing. But unlike LTI it doesn't own a stake in LT's fund management business. It holds a pretty similar portfolio to the Lindsell Train UK Equity OEIC.

Since 2015, the share price FGT has been remained much lower than LTIT, confirming the suggestions that it's the LT company itself that has caused the high premium to NAV

stphnstevey

Last week the shares in Lindsell Train Investment Trust fell by 30% when HL announced it was dropping two related funds from its Wealth 50 list of favourites. They said this was due to a conflict of interest. Investors then experienced similar problems to the Woodford funds and faced a block on transfers out to other platforms.

Currently trading at 40% premium to NAV still