Baillie Gifford Long Term Global?

RolandFlagg

BG Managed Fund is more like the Vanguard funds you mention both in terms of fee and risk. 0.27% at HL if you have an account already with them. It has something like 500 holding, with the top one (Amazon) being just 1.55% of overall fund, and afaik it beats most if not all of Vanguards funds in terms of past performance.
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/b/baillie-gifford-managed-class-b-accumulation

Flatulentoldgoat

RolandFlagg said:

BG Managed Fund is more like the Vanguard funds you mention both in terms of fee and risk. 0.27% at HL if you have an account already with them. It has something like 500 holding, with the top one (Amazon) being just 1.55% of overall fund, and afaik it beats most if not all of Vanguards funds in terms of past performance.
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/b/baillie-gifford-managed-class-b-accumulation

Ah interesting, you're way more familiar with their products than me. That's quite an amazing discount too on the managed fee. Just by means of comparison, any idea if I would be worse off / better off if you took the discount into account plus the extra cost of having an HL SIPP's?

Just trying to decide if I'd be better off moving my SIPP to HL and buying up BGMF. As opposed to using either ABJ or Vanguard and buying vanguard funds (LS100/VWRL/VFEM)

Either way I want to ditch exposure to the UK (sorry rule britannia!)

AlanP_2

Just trying to decide if I'd be better off moving my SIPP to HL and buying up BGMF. As opposed to using either ABJ or Vanguard and buying vanguard funds (LS100/VWRL/VFEM)

I haven't double checked but would expect that the BG fund can be purchased at AJ Bell (if your ABJ was a mis-type).

Croeso69

AlanP_2 said:

Just trying to decide if I'd be better off moving my SIPP to HL and buying up BGMF. As opposed to using either ABJ or Vanguard and buying vanguard funds (LS100/VWRL/VFEM)

I haven't double checked but would expect that the BG fund can be purchased at AJ Bell (if your ABJ was a mis-type).

AJB have the (BGMF) fund but without the 0.15% AMC/OCF discount. 

AJB platform charge is 0.20% less under £250k and 0.15% less above £250k. So AJB same cost as HL or cheaper for this fund. 

Ignoring the minuscule dealing charge for funds levied by AJB which HL do not charge.

kinger101

Alexland said:

Slightly under 100% return last year at which point it would be 80% likely to lose money over the next 3 years.

https://citywire.co.uk/new-model-adviser/news/when-funds-rise-over-100-in-a-year-what-happens-next/a1453835

That's an incorrect conclusion.  OP is expecting good performance based on historic returns.  You're expecting poor performance based on historic returns.  One cannot use historic performance to reliably predict good or poor returns in the future.

I think all it's fair to say is that although most BG funds have had an extremely good run recently, and are relatively cheap for actively managed funds.  But they're concentrated and heavily focused on tech.  This makes them particularly risky, so one needs to carefully consider their appetite and capacity for risk before purchasing them.  

My tuppence worth is OP should stick with VWRL.

Alexland

kinger101 said:

That's an incorrect conclusion.  OP is expecting good performance based on historic returns.  You're expecting poor performance based on historic returns.  One cannot use historic performance to reliably predict good or poor returns in the future.

...
My tuppence worth is OP should stick with VWRL.

It wasn't a conclusion just something relevant to consider when making the decision. Why would you prefer the VWRL? Had you considered that equities tend to provide a better return than other asset types and stock markets tend to go up over time? Fair enough but you can't honestly say that the expectation of historic performance repeating didn't play any part in your thinking?

noclaf

Flatulentoldgoat said:
Either way I want to ditch exposure to the UK (sorry rule britannia!)

I don't know your age OP but I actually wonder if now is the time to add more UK exposure if you have a fairly long investing horizon ahead? If the UK is relatively cheap right now is it not time to pile in...unless it will be getting much much cheaper yet...

kinger101

Alexland said:

kinger101 said:

That's an incorrect conclusion.  OP is expecting good performance based on historic returns.  You're expecting poor performance based on historic returns.  One cannot use historic performance to reliably predict good or poor returns in the future.

...
My tuppence worth is OP should stick with VWRL.

It wasn't a conclusion just something relevant to consider when making the decision. Why would you prefer the VWRL? Had you considered that equities tend to provide a better return than other asset types and stock markets tend to go up over time? Fair enough but you can't honestly say that the expectation of historic performance repeating didn't play any part in your thinking?

I can as the comparison was between two 100% equity funds.  An actively managed BG fund, and a passive index tracker.
Starting with volatility, VWRL will be the least volatile of the two as by definition an index tracker sets out to achieve the mean performance for that index.  Then for cost, 0.15% compounded PA will be less than 0.6% PA.  These two points have no bearing on historic performance.

I see your point about a decision being made to favour equities over bonds/cash due to their historic performance, but I think my point is then being taken somewhat out of context.  The article you quoted was regarding the short-term performance of top the previous year's top funds over the next few years.  If this was a reliable predictor, we'd all be shorting the constituents of the previous year's star performers.

Shedman

I see from reports today on citywire that BG have reduced their stake in Tesla to around 4.25% (the report I read doesn't make clear which funds so I'm presuming it's their total overall exposure across all funds).  Probably a good move to lock in some of the $16 billion odd they've made from Tesla