Lindsell Train investment

Huggy_Bear

Hi

I have recently received my first payout from my doomed Woodford funds and looking to invest on Lindsell Train on the HL platform.

I've done a bit of research as I aim to diversify my investments (I have another investment pot) so I'm looking to invest a small sum and I'm confused by the Inc and Acc and then the A and D class - this is for the Lindsell Train Global Equity.

Can someone explain the difference please - thanks

cattie

I know that Acc is accumalation & Inc is income but can't help on the class.

Alexland

D class is the HL exclusive with a lower ongoing fund management charge.

bowlhead99

A and D have different management fee rates. Use the cheapest available to you.

Inc pays out the income generated from the portfolio, giving you some dividend cash in your account each year and a reduced value for the shares that you still hold. 

Acc accumulates the income inside the fund and reinvests it into more companies, so the share price doesn't drop but you don't get the dividend cash in your hand.

If you are going to stay invested for the long term it makes sense to use the ACC version rather than having to manually reinvest the received dividends every so often

However if you're not doing this in a tax wrapper like an ISA or SIPP, you may prefer to see the cash amounts arrive as a prompt for you to track the taxable income you're making and the cost of what has been reinvested, to help with your tax bills (or to prove you don't have a tax bill). With an ACC fund the income reinvestment happens inside the fund without a cash movement to/from you, so you have to rely on the year end statement to do your tax work.

Inc and Acc concepts work no differently with Lindsell Train or other fund managers' products than they did with Woodford.

However, I had it in my head that the Global Equity product was only available in the Income variant. Some of their other funds are available in both Inc and Acc.

Huggy_Bear

bowlhead99 said:

A and D have different management fee rates. Use the cheapest available to you.

Inc pays out the income generated from the portfolio, giving you some dividend cash in your account each year and a reduced value for the shares that you still hold. 

Acc accumulates the income inside the fund and reinvests it into more companies, so the share price doesn't drop but you don't get the dividend cash in your hand.

If you are going to stay invested for the long term it makes sense to use the ACC version rather than having to manually reinvest the received dividends every so often

However if you're not doing this in a tax wrapper like an ISA or SIPP, you may prefer to see the cash amounts arrive as a prompt for you to track the income tax you're making and the cost of what has been reinvested, to help with your tax bills (or to prove you don't have a tax bill). With an ACC fund the income reinvestment happens inside the fund without a cash movement to/from you, so you have to rely on the year end statement to do your tax work.

Inc and Acc concepts work no differently with Lindsell Train or other fund managers' products than they did with Woodford.

Thank you- this just the explanation I was after - the D class is available on the HL platform and this is a longer term investment so the Acc then  - cheers

actually jusy seen there is no Acc for the Global Equity fund!

SonOf

LT is what many would consider a satellite fund. i.e. an additional one to your core portfolio holdings.   So, what you are planning to use alongside this one?

Huggy_Bear

SonOf said:

LT is what many would consider a satellite fund. i.e. an additional one to your core portfolio holdings.   So, what you are planning to use alongside this one?

I'm looking at Vanguard LS probably 40% equity

aroominyork

bowlhead99 said:

However if you're not doing this in a tax wrapper like an ISA or SIPP, you may prefer to see the cash amounts arrive as a prompt for you to track the taxable income you're making and the cost of what has been reinvested, to help with your tax bills (or to prove you don't have a tax bill). With an ACC fund the income reinvestment happens inside the fund without a cash movement to/from you, so you have to rely on the year end statement to do your tax work.

Am I right in thinking that the dividend allowance means that you don't have to pax tax on the first £2000 of income from investment funds held outside tax wrappers?

Huggy_Bear said:

actually jusy seen there is no Acc for the Global Equity fund!

LT's UK fund is the only one with an Acc option. Both the Global and Japanese (hedged and unhedged) are Inc. only.

ColdIron

Huggy_Bear said:

actually jusy seen there is no Acc for the Global Equity fund!

That's right, Lindsell Train Global Equity do not have a GBP Acc class but you can change your Income Instructions at HL to automatically reinvest the dividend in your Account Settings. HL no longer make a charge for this with funds
.

Huggy_Bear

ColdIron said:

Huggy_Bear said:

actually jusy seen there is no Acc for the Global Equity fund!

That's right, Lindsell Train Global Equity do not have a GBP Acc class but you can change your Income Instructions at HL to automatically reinvest the dividend in your Account Settings. HL no longer make a charge for this with funds
.

Ok thank you for that advice. I'll do that once the deal has gone through.

Prism

SonOf said:

LT is what many would consider a satellite fund. i.e. an additional one to your core portfolio holdings.   So, what you are planning to use alongside this one?

I guess I am one of the few that treats LTGE (and a small selection of other global funds) as a core option. Satellite options for me are EM, small companies, regional funds, property and alternatives