Lindsell train global equity

kinger101

Sailtheworld wrote: »

Ref (c). The whole point of buying a fund with a sector concentration is because you think the fund manager is correct in their belief these sectors will out-perform the wider market over time or at least. It seems pointless and hellishly complicated to then try and reduce this concentration as part of a wider balanced portfolio. May as well just stick with a wider balanced portfolio in the first place.

Ref (d). People do believe that fund managers have an ability to do better than a tracker and, additionally, they're skilled enough to select these managers. Belief systems don't always match reality.

(c) It's not that complicated or pointless. The number of funds in my SIPP are in single digits. I didn't necessarily select it for it's market concentration, other than a relative lack of tech and pharma which I'd already covered with two other funds.

By your argument, it would be pointless for a fund manager to pick anything other than the stock which they thought would perform best, as they'd be diluting that holding. Most pension fund products also consist of labyrinthine funds of funds.

(d) I've never seen any conclusive evidence that it's impossible for a fund manager to beat the market over a sustained period of time. I realize on average they don't beat trackers, but it's not the same thing. It's also not that difficult to find out which fund managers have consistently performed over a long period.

I suspect Nick Train and Michael Lindsell are much better stock pickers than myself. And you. I don't want to achieve diversification through trackers. Just looking at the FTSE 250 (which a global tracker would include) there are companies in there I wouldn't choose to invest in.

SeniorSam

An interesting question and the answers were also so.
I too have a Sipp with only 4 investments - SPF SDL UK Buffetology, Fundsmith, Lindsell Train UK Equity, Lindsell Train Global Equity and Smithson. All have done well and all go up and down from time to time.

The HL site is, as you say, so easy to look up activity and I check almost every day now I am retired and keep a graph of performance every month, With other investments to draw from, I take very little from the Sipp each year and always lump sums but £10k as a rule most years. The ovearll Sipp has grown from £360.5k April 2018 to £408k presently, although £436k in September.

Whilst I am able to keep an eye on investments, I am happy with my selection (Buffetology being the worst)

LTGE is my largest holding and overall, when the Sipp is on the high side ( Sep 2019 for instance) I convert some to cash. That has enabled me to use some of that cash to buy £40k more units of LTGE last week at 256.73 and back in August it was 282.76, so I expect an uplift eventually as I expect this particular fund to continue doing as well as some others.

I just don't bother to worry about Lindsell Train as I believe he has done a good job and will continue doing so, but fortunately I don't need too much access, so just keep moving some to cash when up and buy back in when down.

kinger101

SeniorSam wrote: »

An interesting question and the answers were also so.
I too have a Sipp with only 4 investments - [1]SPF SDL UK Buffetology, [2]Fundsmith, [3]Lindsell Train UK Equity, [4]Lindsell Train Global Equity and [5]Smithson. All have done well and all go up and down from time to time.

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itwasntme001

SeniorSam wrote: »

I just don't bother to worry about Lindsell Train as I believe he has done a good job and will continue doing so, but fortunately I don't need too much access, so just keep moving some to cash when up and buy back in when down.

Great so you have found a way to buy low sell high on a consistent basis so you make even more then if you had just held? That too with a fund that has consistently gone up and drawdowns (until recently) have been relatively short lived (and with a OEIC fund that makes you wait a few days to access the cash when you sell it given settlement etc.).


You must be one of the best market timers there exists given what you say. I am surprised your SIPP is "only" worth <£500k.

Sue58

SeniorSam wrote: »

I too have a Sipp with only 4 investments - SPF SDL UK Buffetology, Fundsmith, Lindsell Train UK Equity, Lindsell Train Global Equity and Smithson. All have done well and all go up and down from time to time.

As an experienced former IFA do you feel your portfolio is diversified enough over regions/sectors? It is also heavily invested in very highly concentrated funds? I'm only interested because I feel its not what you would usually expect from an IFA.

MPN

Sue58 wrote: »

As an experienced former IFA do you feel your portfolio is diversified enough over regions/sectors? It is also heavily invested in very highly concentrated funds? I'm only interested because I feel its not what you would usually expect from an IFA.

Well I feel sure that SeniorSam has his reasons to be happy with his SIPP portfolio. Although it would be interesting to hear his views on how he arrived at/selected this particular portfolio?

Moe_The_Bartender

Sue58 wrote: »

As an experienced former IFA do you feel your portfolio is diversified enough over regions/sectors? It is also heavily invested in very highly concentrated funds? I'm only interested because I feel its not what you would usually expect from an IFA.

My own portfolio consists of Fundsmith, LTGE, SSON and Evenlode Global Income representing nearly 60% of my pot, the other 40% being CGT, PNL, RIT, three infrastructure funds and a handful of REITS.

No Emerging markets, no banks, oilers or extraction industries to be seen but in my opinion, a well diversified portfolio designed for wealth preservation.

I just don’t understand why investors feel the need to include EM funds with their political and corporate governance risks when the likes of Unilever and Diageo gives them exposure to such markets. As for extraction industries, I just don’t like cyclical businesses.

Sue58

Moe_The_Bartender wrote: »

My own portfolio consists of Fundsmith, LTGE, SSON and Evenlode Global Income representing nearly 60% of my pot, the other 40% being CGT, PNL, RIT, three infrastructure funds and a handful of REITS.

No Emerging markets, no banks, oilers or extraction industries to be seen but in my opinion, a well diversified portfolio designed for wealth preservation.

I just don’t understand why investors feel the need to include EM funds with their political and corporate governance risks when the likes of Unilever and Diageo gives them exposure to such markets. As for extraction industries, I just don’t like cyclical businesses.

I'm currently looking to invest in infrastructure. If you don't mind me asking which three funds did you decide on?

Prism

Moe_The_Bartender wrote: »

I just don’t understand why investors feel the need to include EM funds with their political and corporate governance risks when the likes of Unilever and Diageo gives them exposure to such markets .

For me two main reasons. Over the long run EM exposure can increase returns while also reducing total volatility.

Moe_The_Bartender

Sue58 wrote: »

I'm currently looking to invest in infrastructure. If you don't mind me asking which three funds did you decide on?

First State Global Listed Infrastructure
FP Foresight Global Real Infrastructure
FP Foresight UK Infrastructure Income