Lindsell Train Global Equity class D - income only?

Lois_and_CK

I'm looking at the LT global equity with HL within my SIPP. I can't see an accumulation version of it though, so if I wanted to go ahead, I'd have to use the income version.

I realise I can ask HL to automatically reinvest the income for me, but reading the FAQs on their website, it looks like every time they do this, it comes with a 1% charge. Is this reasonable? Up to now, I've only ever invested in accumulation funds, so this is new to me.

It's making me lean more towards the Fundsmith equity fund, where there is an accumulation version available.

Prism

Yes there is only an income version. I use the dividend to pay the platform fees and then every so often when the cash amount increases manually buy more units.

Lois_and_CK

Thanks Prism. That's a good idea as I currently transfer cash into a fund & share account separately for the fees.

bowlhead99

There isn't an accumulation version of the fund.

Generally brokers that charge for reinvestment of dividends do this in relation to stockmarket listed investments where they have to go and place an order on the stock exchange for you. However, this charge is not always payable for investments in open ended funds which don't require a stock market order (just a fund subscription request), because often the platform fee structure for open ended funds is an annual percentage basis with no dealing fees.

I don't know whether the HL dividend reinvestment fee applies to funds on their platform or just stock exchange traded stuff like shares, ITs and ETFs - but as HL don't charge a transaction fee on fund investments, you could manually reinvest the money into the fund whenever you like - assuming the amounts are meangful. If they are not big enough to be meaningful it doesn't really matter if they're not invested

As Prism says, it can be handy to always have a bit of money coming in to pay fees, even if the money that comes in is a few times bigger than the fees.

Lois_and_CK

Thanks bowlhead - that's really helpful.