S&S ISA Funds Suggestion

mazibee

Any comments on this fund will be much appreciated.

Baillie Gifford China Class B - Accumulation (GBP)

In the last 5 years (QTR1 2021) touched 1000p made a low of around 358 p in Feb 24 and now trading at around levels of 425p

Someone must have bought at ATH of 1000 and now  its approximatley 60% down around  425, is it worth buying at these levels?

eskbanker

The fact that a fund has fallen a long way from its ATH doesn't signify that it's returning there, so you need to assess the fundamentals in terms of why it fell and (more importantly) the likelihood of significant future growth - what's led you to consider this one in particular?

dunstonh

mazibee said:

Any comments on this fund will be much appreciated.

Baillie Gifford China Class B - Accumulation (GBP)

In the last 5 years (QTR1 2021) touched 1000p made a low of around 358 p in Feb 24 and now trading at around levels of 425p

Someone must have bought at ATH of 1000 and now  its approximatley 60% down around  425, is it worth buying at these levels?

A 60% drop with China is not that high.  Its suffered bigger drops in the past.

mazibee

eskbanker said:

The fact that a fund has fallen a long way from its ATH doesn't signify that it's returning there, so you need to assess the fundamentals in terms of why it fell and (more importantly) the likelihood of significant future growth - what's led you to consider this one in particular?

I was just comapring funds on the HL platform for best cummulative performance in the last 5 years, Turkey was on top and BG China was one of the funds that has performed worst in the last 5 years.

I am not sure what is the reason, please if you can shed some light. To me it seems like due to Covid as it originated from China, the whole world suffered but China in particularly the most, and as now Covid effect is fading away, rest of the world markets are hovering close to ATH, my thinking ( which seems to be worng) is that Chinese economy and the stock marklet will recover.

Also when checking not all but mnost of the BG fund/ trusts are down in the last 5 years.

mazibee

dunstonh said:

mazibee said:

Any comments on this fund will be much appreciated.

Baillie Gifford China Class B - Accumulation (GBP)

In the last 5 years (QTR1 2021) touched 1000p made a low of around 358 p in Feb 24 and now trading at around levels of 425p

Someone must have bought at ATH of 1000 and now  its approximatley 60% down around  425, is it worth buying at these levels?

A 60% drop with China is not that high.  Its suffered bigger drops in the past.

On HL Platform  I can only check the data for last 5 years.

gravel_2

mazibee said:

dunstonh said:

mazibee said:

Any comments on this fund will be much appreciated.

Baillie Gifford China Class B - Accumulation (GBP)

In the last 5 years (QTR1 2021) touched 1000p made a low of around 358 p in Feb 24 and now trading at around levels of 425p

Someone must have bought at ATH of 1000 and now  its approximatley 60% down around  425, is it worth buying at these levels?

A 60% drop with China is not that high.  Its suffered bigger drops in the past.

On HL Platform  I can only check the data for last 5 years.

Typically you will see further back if you look up the indices the funds track. The below goes back 10 years.

https://research.ftserussell.com/Analytics/FactSheets/Home/DownloadSingleIssue?issueName=WICHN&isManual=False

EDIT: can see BG fund seeks to outperform MSCI China. For that:
https://www.msci.com/documents/10199/d84b06d0-b81c-48ce-89b8-c57f808065e4

eskbanker

mazibee said:

eskbanker said:

The fact that a fund has fallen a long way from its ATH doesn't signify that it's returning there, so you need to assess the fundamentals in terms of why it fell and (more importantly) the likelihood of significant future growth - what's led you to consider this one in particular?

I was just comapring funds on the HL platform for best cummulative performance in the last 5 years, Turkey was on top and BG China was one of the funds that has performed worst in the last 5 years.

I am not sure what is the reason, please if you can shed some light. To me it seems like due to Covid as it originated from China, the whole world suffered but China in particularly the most, and as now Covid effect is fading away, rest of the world markets are hovering close to ATH, my thinking ( which seems to be worng) is that Chinese economy and the stock marklet will recover.

Also when checking not all but mnost of the BG fund/ trusts are down in the last 5 years.

I don't claim any insight to the past or (more importantly) the future of Chinese market performance beyond the superficial analysis in your post, but that's why I wouldn't choose to invest in a fund there (beyond natural weighted exposure from global funds)!

The point was really that you can't rely on the past to guide the future either way round, so there's no value in pivoting from picking recent 'winners' to identifying 'losers' instead, as neither approach is any more legitimate than choosing last week's lottery numbers for this week's ticket, and so you need to do your due diligence on the fundamentals....

Alexland

masonic said:

The HSBC fund includes emerging markets, so is more diversified. The Fidelity fund is developed markets only. Both are 100% equities, so no bonds.

For balance it's worth mentioning the Fidelity developed world fund has a huge amount of diversification already and by including the circa 10% EM exposure via the HSBC all world fund you are investing a fair proportion of that in China which has various governance and shareholder rights issues let alone working against global democratic freedoms.

My preference is to invest in developed world trackers with an ESG filter where it makes no difference to the charges (eg LGGG) and if that costs me a little bit of diversification and long term performance then it's worth it. So far by luck it seems to have enhanced my return which has given me a buffer for future under-performance.

There are probably better strategies than avoiding EM and using ESG filters but it's the best option I have found as an armchair investor to make good investments. Hopefully fund/etf choice will grow over time as I still have a massive slug of VEVE and some Fidelity World that I would like to improve. But then I guess companies in the developed world need capital to make the weapons to defend those democratic freedoms...

thunderroad88

mazibee said:

I opted for these.

75% -----HSBC FTSE All World Index Class C - Accumulation (GBP)
15%------Legal & General Global Technology Index Trust Class C - Accumulation (GBP)

10%------Legal & General Global 100 Index Class C - Accumulation (GBP)

I like that. I don’t think you’ll go too far wrong over the long term with being mostly in a good diverse world tracker with a bit of extra weighting towards large quality companies, as you have done. Only missing some small caps but I don’t think that’s anything to worry about. It looks to me like a low cost pf you can set and forget. 

masonic

Alexland said:

masonic said:

The HSBC fund includes emerging markets, so is more diversified. The Fidelity fund is developed markets only. Both are 100% equities, so no bonds.

For balance it's worth mentioning the Fidelity developed world fund has a huge amount of diversification already and by including the circa 10% EM exposure via the HSBC all world fund you are investing a fair proportion of that in China which has various governance and shareholder rights issues let alone working against global democratic freedoms.
My preference is to invest in developed world trackers with an ESG filter where it makes no difference to the charges (eg LGGG) and if that costs me a little bit of diversification and long term performance then it's worth it. So far by luck it seems to have enhanced my return which has given me a buffer for future under-performance.
There are probably better strategies than avoiding EM and using ESG filters but it's the best option I have found as an armchair investor to make good investments. Hopefully fund/etf choice will grow over time as I still have a massive slug of VEVE and some Fidelity World that I would like to improve. But then I guess companies in the developed world need capital to make the weapons to defend those democratic freedoms...

Yes, about 2.3% of the HSBC fund would be listed in China. Personally, I'm ambivalent to the theory of creating positive change through boycott, but if I could easily eliminate certain companies from my holdings, then the likes of Tencent and Alibaba would not be my priority. It is probably more feasible to vote with my feet as a consumer than as an investor. I overweight EMs, but a large slug of that is actively managed. Interestingly, there is an iShares MSCI EM ESG ETF, but I don't see much difference in its composition vs the vanilla index.

On the subject of weapons, I'm not sure all of our recent sales could be described as being used to defend democratic freedoms, certainly not sales in past decades, but let's not go there!