Lindsell Train UK Equity Acc Fund

rothers

Hello,

I have held the above fund since around 2016, adding more in 2018 and it has done extremely well with an overall increase of about 62%. My question is, can this continue or is it likely to come back down in price? I’ve been burnt with Woodford and would hate to see the same happen to this fund. I am considering selling and going for a multi asset fund. LT isn’t my only fund but it is my largest by some distance. I’d be grateful for any opinion that you could give baring in mind I appreciate that nobody has a crystal ball.

Many Thanks

Linton

There is no commonality between LT UK Equity and Woodford.  Woodford invested in small companies that proved impossible to sell quickly enough when many of his investors lost faith.  LT UK Equity is a large/medium company fund.  Woodford invested in risky companies.  Lindsell Train prefers solid consumer oriented companies like Diageo, Unilever etc.  A bit like Woodford in his glory days 20 years ago.

Where I think you are taking unnecessary risk is having this fund as your "largest by some distance" investment. The fund of course is solely UK and has a very focussed strategy holding just 23 companies in 5 sectors, with 65% in just 2 sectors, Financial Services and Consumer Defensive.  In my view you need to be invested much more broadly.

MK62

It would seem you are already uneasy about the size of your exposure to this fund, and tbh, I don't think that feeling is likely to go away with anything said on here.

The fund has done very well for you, so it's not unreasonable to cash in some of the profits and diversify away a bit......probably no need to sell out completely, but just to a level where you feel more comfortable - I got the impression from your post that it's your level of exposure rather than the fund itself which is causing your uneasiness.

rothers

Thanks both, you’re right, I think that it is the exposure that I’m concerned about. I think that I’ll take some of the gains and put it into a multi asset fund. Thanks for your replies.