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Why do some ‘good’ funds attract so little money?

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    edited 4 July 2021 at 12:36PM
    Prism said:
    It seems to me that one or two strong funds from investment company promotes the rest. So Scottish Mortgage has a strong effect on Baillie Giffords other funds. 
    BG invested in Tesla across the fund management group. At the peak share price had some 8% of AUM invested in Tesla. 
  • Prism
    Prism Posts: 3,856 Forumite
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    Prism said:
    It seems to me that one or two strong funds from investment company promotes the rest. So Scottish Mortgage has a strong effect on Baillie Giffords other funds. 
    BG invested in Tesla across the fund management group. At the peak share price had some 8% of AUM invested in Tesla. 
    Thats kind of my point. Relatively few of the BG funds hold Tesla as an investment and yet all of their funds are likely inflated to some degree (AUM) by the performance of those that did.
  • aroominyork
    aroominyork Posts: 3,642 Forumite
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    edited 4 July 2021 at 2:51PM
    I think, Prism, you are saying that funds flowed into all BG funds (ignoring that many are ITs) on the back of SMT's performance. I don't think that's right - BG's investment style hit a sweet spot across many sectors/geographies last year. Look at Europe for example.

  • Prism
    Prism Posts: 3,856 Forumite
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    Yes the BG style did well last year but without the big name branding of Scottish Mortgage, Monks etc would their other funds be as popular even though they performed well? I think once a fund house does well in one area it gets people looking at its other funds even if they are not quite as stand out.
  • george4064
    george4064 Posts: 2,938 Forumite
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    In addition to the previous good posts, I think what this thread proves is that everyone has different opinions. One person may think a particular fund is an absolute screaming buy whilst someone else might think that same fund is damn right average or below average.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2025 - #024 £1,450 / £15,000 (9%)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Prism said:
    Prism said:
    It seems to me that one or two strong funds from investment company promotes the rest. So Scottish Mortgage has a strong effect on Baillie Giffords other funds. 
    BG invested in Tesla across the fund management group. At the peak share price had some 8% of AUM invested in Tesla. 
    Thats kind of my point. Relatively few of the BG funds hold Tesla as an investment and yet all of their funds are likely inflated to some degree (AUM) by the performance of those that did.
    BG offers investment services to a range of clients not just retail.  
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