Scottish Mortgage Investment Trust

csgohan4

I have the following fund a short listed for my EM fund:
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/b/baillie-gifford-emerging-markets-growth-b-accumulation/key-features

for me it ticks alot of my EM boxes, with a good deal of exposure to India  and not over weighted to China  like 60%  for example, but as with all things, it doesn't come without it's risks, esp with a modest amount of exposure to Brazil in the current times. 

I am sure there are other EM or IT that cover tech more specifically and to one's own tastes

The EM IT you quoted, Templeton Emerging Markets is not bad either, OCF on the high side for me but ticks my boxes indeed, certainly one for my short list, but you can see the volatility in the  5 prev years

Something similar would be Pacific Horizon Investment Trust:
http://tools.morningstar.co.uk/uk/cefreport/default.aspx?tab=8&SecurityToken=E0GBR00QB2%5D2%5D0%5DFCGBR%24%24ALL&Id=E0GBR00QB2&ClientFund=0&CurrencyId=GBP

Although it seems their very much on the up with a high premium %

bowlhead99

csgohan4 said:

I have the following fund a short listed for my EM fund:
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/b/baillie-gifford-emerging-markets-growth-b-accumulation/key-features

for me it ticks alot of my EM boxes, with a good deal of exposure to India  and not over weighted to China  like 60%  for example, but as with all things, it doesn't come without it's risks, esp with a modest amount of exposure to Brazil in the current times. 

I am sure there are other EM or IT that cover tech more specifically and to one's own tastes

The EM IT you quoted, Templeton Emerging Markets is not bad either, OCF on the high side for me but ticks my boxes indeed, certainly one for my short list, but you can see the volatility in the  5 prev years

Both the BG fund and TEM are decent long term performers, and in my parents' ISAs we use BG for Dad and TEM for Mum as the main EM holdings.

BG are known for a growth-focused style and they do have some differences in global allocations. Per Trustnet, the annualised volatility over 3 years is  similar, slightly greater for BG at 18% vs 17.8% at TEM, while the largest 1 yr loss in the last 3 years was 21.8% at TEM vs 20.7% at BG.  If you do a chart back 21 years (to just before dotcom bubble days) you'll see they had both given the same return (along a slightly different path) until about December 2008. Then over the next six years TEM as the world recovered from the global financial crisis, TEM moved ahead (about 40% ahead at one point) before they met up again in December 2014. Then it was BG's turn to move ahead for the next six years, about 25% from end of 2014 to now.   

The long term lead manager of TEM (Mark Mobius, a pioneer of emerging markets investing) started to take a back seat / chairman role from 2015 and left to set up his own shop in 2018 where he focuses on smaller or midsized companies (both TEM and BG are £billion plus funds, though had not been in their infancy). Some might observe that as he wound down and handed over, the trust started to perform relatively worse than BG, but this is not necessarily personal or cultural, just a difference in what style happened to work best in the different time periods. 

TEM is an investment trust so will sometimes trade at a discount to its underlying NAV. In the recent Covid-induced crash it went from about a 10% discount to 20% as market sentiment turned. This helps to explain why it 'lost more' from 1 Jan to mid-March this year, dropping 30% while BG (which is not stock exchange traded and simply publishes a daily price) only fell 25%.  Not a big deal if you're not the sort of person who needs to sell a volatile asset in a crisis. The discount is now back at 12% and in a recent 'reshuffle' my Dad let go of some of his BG while Mum added to her TEM - buying at  greater-than-average discount can be a good opportunity. 

Both the funds have top quartile performance in recent years and I've held TEM for as long as I can remember having EM exposure, despite the last decade not being particularly inspiring. On a longer term view, the last two decades taken together have been fine, particularly Jan 09 to Jan 11 or Jan 16 to Jan 18 show the sort of returns that can be made from the sector in the good times. 

csgohan4 said:

Something similar would be Pacific Horizon Investment Trust:
http://tools.morningstar.co.uk/uk/cefreport/default.aspx?tab=8&SecurityToken=E0GBR00QB2%5D2%5D0%5DFCGBR%24%24ALL&Id=E0GBR00QB2&ClientFund=0&CurrencyId=GBP

Although it seems their very much on the up with a high premium %

It depends whether you are looking for global emerging markets exposure which is what the first two funds look at, or Asia-Pacific ex Japan exposure (including developed markets such as HK and Singapore and excluding South America, Africa, Middle East, Emerging Europe/ Russia etc) which is what the Pacific Horizon one looks at.

csgohan4

As Always BH well researched and thought out responses. 
When I do come to investing, I may split my EM exposures to several EM funds to cover a more diverse geographical coverage, which may include techs as well. say keep it at 20% but invest 5% in one company and another e.t.c

I see people on here have also had 2 global index funds when they couldn't choose between them as well. 

in my own search I have excluded those with high OCF say above 0.8, but thinking about it, I am excluding decent funds such as TEM.

Certainly food for thought, I know Anotherjoe dislikes cheap passive Global index trackers and prefers active funds for these, but they will invariably come at a cost. 

AnotherJoe

RolandFlagg said:

I'm a big fan of this trust run by James Anderson. I put a monthly amount into it via HL together with a couple of ETFs I have there.
Now, I know that SMT is a fund and not an ETF, but the fund charge on HL is 0.36% then obviously HL charge their platform fee.
If I wanted I could invest in SMT monthly using a free trading platform such as Trading212 I take it SMT still charge the 0.36%?

Its not a fund, its an investment trust.

So you are buying a share.

And HL have a capped charge of £45 for holding shares in an ISA, £200 in a SIPP and no charge in a fund account.

 

Sally57

csgohan4 said:

I have the following fund a short listed for my EM fund:
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/b/baillie-gifford-emerging-markets-growth-b-accumulation/key-features

for me it ticks alot of my EM boxes, with a good deal of exposure to India  and not over weighted to China  like 60%  for example, but as with all things, it doesn't come without it's risks, esp with a modest amount of exposure to Brazil in the current times. 

I am sure there are other EM or IT that cover tech more specifically and to one's own tastes

The EM IT you quoted, Templeton Emerging Markets is not bad either, OCF on the high side for me but ticks my boxes indeed, certainly one for my short list, but you can see the volatility in the  5 prev years

Something similar would be Pacific Horizon Investment Trust:
http://tools.morningstar.co.uk/uk/cefreport/default.aspx?tab=8&SecurityToken=E0GBR00QB2%5D2%5D0%5DFCGBR%24%24ALL&Id=E0GBR00QB2&ClientFund=0&CurrencyId=GBP

Although it seems their very much on the up with a high premium %

Have you looked at JPMorgan Emerging Markets Investment Trust?

dekkard

Those who invested in Scottish Mortgage on Freetrade - have you incurred any unexpected fees? Judging by earlier comments there shouldn't be any, but just curious.

underground99

dekkard said:

Those who invested in Scottish Mortgage on Freetrade - have you incurred any unexpected fees? Judging by earlier comments there shouldn't be any, but just curious.

I've had an account with freetrade for a while. I don't hold SMT through them, but it's available. There are never any 'unexpected' fees.

dekkard

underground99 said:

dekkard said:

Those who invested in Scottish Mortgage on Freetrade - have you incurred any unexpected fees? Judging by earlier comments there shouldn't be any, but just curious.

I've had an account with freetrade for a while. I don't hold SMT through them, but it's available. There are never any 'unexpected' fees.

Thanks. Freetrade shows the ongoing charges for SMT are 0.69%. Hargreaves Lansdown shows the ongoing charges as 0.36%. Am I missing something or is Freetrade charging more?

DireEmblem

Same can be said for 212, no unexpected fees.

noh

dekkard said:

underground99 said:

dekkard said:

Those who invested in Scottish Mortgage on Freetrade - have you incurred any unexpected fees? Judging by earlier comments there shouldn't be any, but just curious.

I've had an account with freetrade for a while. I don't hold SMT through them, but it's available. There are never any 'unexpected' fees.

Thanks. Freetrade shows the ongoing charges for SMT are 0.69%. Hargreaves Lansdown shows the ongoing charges as 0.36%. Am I missing something or is Freetrade charging more?

HL also list the net ongoing charge as 0.69%. Go to the costs tab and then expand the investment charges.
https://www.hl.co.uk/shares/shares-search-results/s/scottish-mortgage-it-plc-ordinary-shares-5p/costs