Thoughts please on BG US GROWTH TRUST.

TUVOK

In order to reduce the heavy charge for holding funds in HL, I have been exchanging, when researched and found suitable,  the fund to the equivalent or as near as possible IT.
I would welcome thoughts on exchanging my holding in the BG American fund to BG US GROWTH IT, they have both performed well over a number of years but with differing outlooks.
Thanks for any/all replies

pip895

The IT is more risky - obviously I don't know what other funds you are invested in but I am tending to dial down my US investments because of current valuations.  Going for something more global might be an option - SMT even..if you aren't already invested?

Aminatidi

Keep in mind it holds private equity and being a trust is subject to premium/discount based on sentiment.

Higher highs and lower lows than the fund probably.

tebbins

TUVOK said:

In order to reduce the heavy charge for holding funds in HL, I have been exchanging, when researched and found suitable,  the fund to the equivalent or as near as possible IT.
I would welcome thoughts on exchanging my holding in the BG American fund to BG US GROWTH IT, they have both performed well over a number of years but with differing outlooks.
Thanks for any/all replies

Both US and growth equity have done very well this past decade and both the US, growth in general (i.e. globally) and US growth equity in particular are sitting on some very high valuations. What does well in one decade has a habit of not doing as well in the next.

https://youtu.be/mVe1oGzKpJw

TUVOK

Thanks to all for their comments.
I've found Ramin's utube clips very good and most informative.
Your comments highlighted my problem with changing to the trust, that of volatility.
The fund can be quite volatile, but the trust more so, will have to ponder more!
Thanks again.

Aminatidi

Not sure either would be my pick if volatility was a concern.

I had 10% in the trust and it didn't feel pleasant the way it could yoyo around sometimes.

Pleasant on the upside of course but much less so on the downside.

coastline

No expert but what I see on a regular basis is a fund or IT etc which has basically ran with the market then during the pandemic taken off. BG is no exception. Either they've repositioned in early 2020 to take advantage or certain holdings have boomed.? Why weren't they moving at a pace in the earlier years. ? If a fund has the "edge " then I would have thought this would be the case ? Just an observation.

MSCI World Index - Performance Summary | Trustnet

This year a different story.

 MSCI World Index - Performance Summary | Trustnet

Linton

coastline said:

No expert but what I see on a regular basis is a fund or IT etc which has basically ran with the market then during the pandemic taken off. BG is no exception. Either they've repositioned in early 2020 to take advantage or certain holdings have boomed.? Why weren't they moving at a pace in the earlier years. ? If a fund has the "edge " then I would have thought this would be the case ? Just an observation.

MSCI World Index - Performance Summary | Trustnet

This year a different story.

 MSCI World Index - Performance Summary | Trustnet

BG generally focus on carefully chosen high growth medium sized companies.  BG US Growth is perhaps an extreme example of this.  For  example the second largest holding is Moderna.  They also have Zoom in their top 10 list of holdings.  Whether they held them prior to Covid I dont know but would not be surprised. Another good example was Tesla which they bought in the early days.  

Since the start of this year tech companies have not shown the growth of previous years.