Lindsell train global equity

ruperts

According to trustnet its performance over 3 years ranks it 1st out of 279. Over three months it's ranked 299th out of 330. Wonder how many people invested purely on the basis of the former and are now scratching their heads about the latter.

Ceme3000

It's only back to where it was in June. (Like a lot of other funds at the moment)

stehouk

coyrls wrote: »

Are you giving all your other investments the same level of scrutiny?

ruperts wrote: »

According to trustnet its performance over 3 years ranks it 1st out of 279. Over three months it's ranked 299th out of 330. Wonder how many people invested purely on the basis of the former and are now scratching their heads about the latter.

That will be me then.:eek::rotfl::T

itwasntme001

Ceme3000 wrote: »

It's only back to where it was in June. (Like a lot of other funds at the moment)

Actually it is April, it has underperformed by quite a bit recently.


But who cares, investing is for the long term right?

SonOf

ruperts wrote: »

According to trustnet its performance over 3 years ranks it 1st out of 279. Over three months it's ranked 299th out of 330. Wonder how many people invested purely on the basis of the former and are now scratching their heads about the latter.

If they did then they are clueless and that alone should mean they should not be investing in that type of fund and potentially, not be investing at all.

bowlhead99

SonOf wrote: »

But are you able to analyse the info and form an informed opinion from it?
You said in #1 that you didn't know why it was behaving as it was.

#1 was a different person.

Though I agree with your sentiment. The fund is valued daily at midday with the valuation not being published until the accounting has been performed some time later. The top holdings are only disclosed monthly, some weeks in arrears. The fund doesn't purport to follow a published index.

So if you look at a daily price movement on your HL app and see that the fund is down 2% on yesterday, you can't easily do a like-with-like comparison with some index and say that the reason is due to world index movement from yesterday midday to today midday multiplied by the currency movement across a basket of currencies in a specific ratio of dollar to yen and euro and franc from one noon to the next. Especially as most indexes and daily exchange rates are not published at noon, but at the end of a session.

The cause of the movement might be roughly for those reasons of course, even if your fund is not an index fund. You're unlikely to have the data to hand from a couple of minutes logged into your fund platform. You might guess at that being the explanation and not get to do the maths in full, while the real reason might be that company ABC which occupies position 12 on the top holdings list so wasn't mentioned in the last factsheet, has halved in value. Reasons for significant movements tend to become clearer with more hindsight and potentially with the help of management commentary on the reports.

So when invested in a collective investment scheme it could be pretty draining to review the daily price and get into the habit of performing an analytical review of value movements in real time just because the NAV is available to you in an app. If anything it will give you false confidence that you're on top of things because you will mentally assign simplistic explanations to things (eg, it holds Unilever which is down this week, and Trump is threatening a trade war again, so it's probably related to those things) which end up not being the main driver at all.

Thrugelmir

ruperts wrote: »

According to trustnet its performance over 3 years ranks it 1st out of 279. Over three months it's ranked 299th out of 330. Wonder how many people invested purely on the basis of the former and are now scratching their heads about the latter.

Fund size perhaps. Investing new money will become increasingly more difficult. Investors will naturally follow a herd instinct based on historic performance.

2011 - Launched £44m
2016 - Just over £2bn
2017 - £3.7 bn
2018 - £5.2bn
2019 (interim to end of June) - £8.4bn

Kendall80

Ceme3000 wrote: »

It's only back to where it was in June. (Like a lot of other funds at the moment)

Indeed. Displaying a pattern over that period that roughly appears to be an inverse curve of the GBP:USD exchange rate. Though not the whole story - makes complete sense.

itwasntme001

Kendall80 wrote: »

Indeed. Displaying a pattern that roughly appears to be an inverse curve of the GBP:USD exchange rate. Makes complete sense.

Except of course LT has about 35% in UK stocks and sterling has risen about 8% from the lows, whilst LT is down about 10% from peak so not all can be explained by sterling (roughly half can not mathematically).

bostonerimus

stehouk wrote: »

yes i do,
i'm not a chuck it in and forget about it sort of person.

Ahh, there's your problem, well at least in part. Carefully casting your money about, and then forgetting about it is often a good strategy.