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  • FIRST POST
    • rathernot
    • By rathernot 23rd Feb 18, 7:14 PM
    • 256Posts
    • 74Thanks
    rathernot
    One more IT for this years ISA...
    • #1
    • 23rd Feb 18, 7:14 PM
    One more IT for this years ISA... 23rd Feb 18 at 7:14 PM
    I've about 2.5k left in this years ISA allowance which currently looks like:

    Fundsmith 25%
    Lindsell Train Global Equity 25%
    RIT Capital 25%
    Shin Nippon 12.5%

    There's plenty of cash in reserves and I'll be maxing out each year for plenty of years to come with plenty of opportunity to rebalance/adjust if required.

    Where would your final 12.5% go? If you don't want to get into specific a specific IT then which sector?
Page 3
    • Audaxer
    • By Audaxer 24th Feb 18, 8:45 PM
    • 1,081 Posts
    • 635 Thanks
    Audaxer
    Which market(s) are your refering to historically?
    Originally posted by Thrugelmir
    I was just quoting the figures economic had used in his post.
    • bostonerimus
    • By bostonerimus 24th Feb 18, 8:59 PM
    • 1,942 Posts
    • 1,281 Thanks
    bostonerimus
    It's done great over the past 10 years so not really a bad decision.

    Or alternatively, you can select individual smaller companies IT's in the main regions such as UK, Europe, US, Japan and Asia Pacific?
    Originally posted by MonroeM
    "Great" isn't a quantitative measure so the question as to why F&C is attractive still remains. Is it the investment philosophy, average market cap etc?
    Misanthrope in search of similar for mutual loathing
    • Thrugelmir
    • By Thrugelmir 24th Feb 18, 11:35 PM
    • 58,946 Posts
    • 52,274 Thanks
    Thrugelmir
    Vanguard Global Small Cap index has better 1, 3 and 5 year returns and I'm sure there are other examples of better performance.......so why F&C?
    Originally posted by bostonerimus
    Are you sure?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • bostonerimus
    • By bostonerimus 25th Feb 18, 12:40 AM
    • 1,942 Posts
    • 1,281 Thanks
    bostonerimus
    Are you sure?
    Originally posted by Thrugelmir
    Well over 5 years Vanguard Global small cap return is 100%, maybe you can post the F&C.....I see it as up 80%, but maybe I'm missing some dividends
    Misanthrope in search of similar for mutual loathing
    • Linton
    • By Linton 25th Feb 18, 8:30 AM
    • 9,395 Posts
    • 9,529 Thanks
    Linton
    Well over 5 years Vanguard Global small cap return is 100%, maybe you can post the F&C.....I see it as up 80%, but maybe I'm missing some dividends
    Originally posted by bostonerimus
    5 year returns according to Trustnet......
    Vanguard Global Small Companies 90.3%
    F&C Global Small Companies 88.4%

    Their performance graphs very close.F&C outperformed Vanguard in 4 out of the past 5 years but did badly in in 2016. Perhaps due to the Brexit vote fall in the as the F&C fund has a much higher % UK, small company shares not benefitting from the rise in the FTSE100.
    Last edited by Linton; 25-02-2018 at 8:38 AM.
    • rathernot
    • By rathernot 25th Feb 18, 8:35 AM
    • 256 Posts
    • 74 Thanks
    rathernot
    Vanguard Global Small Cap index has better 1, 3 and 5 year returns and I'm sure there are other examples of better performance.......so why F&C?
    Originally posted by bostonerimus
    If I go that route the usual reason for any active v tracker - a hope/belief that the ability to adjust allocations if required will pay off.

    I also like that there is some allocation to Asia other than Japan.

    Not to say that's 100% the route I'm going down, could be something global similar to Fundsmith/LT yet.
    • Thrugelmir
    • By Thrugelmir 25th Feb 18, 1:01 PM
    • 58,946 Posts
    • 52,274 Thanks
    Thrugelmir
    5 year returns according to Trustnet......
    Vanguard Global Small Companies 90.3%
    F&C Global Small Companies 88.4%
    Originally posted by Linton
    Differs once income is reinvested. Worth noting that they don't track the same indices.

    F&C are above their benchmark indices i.e. 30% Numis UK Smaller Companies (ex investment companies) Index / 70% MSCI all country World ex UK Small Cap Index.

    Whereas Vanguard purely track the MSCI World Small Cap
    Index.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Linton
    • By Linton 25th Feb 18, 1:13 PM
    • 9,395 Posts
    • 9,529 Thanks
    Linton
    Differs once income is reinvested. Worth noting that they don't track the same indices.

    F&C are above their benchmark indices i.e. 30% Numis UK Smaller Companies (ex investment companies) Index / 70% MSCI all country World ex UK Small Cap Index.

    Whereas Vanguard purely track the MSCI World Small Cap
    Index.
    Originally posted by Thrugelmir
    Return figures are after income re-invested. That is the default for investment performance comparisons.
    • rathernot
    • By rathernot 3rd Mar 18, 12:37 PM
    • 256 Posts
    • 74 Thanks
    rathernot
    I went with SMT which ironically lost 5% this week but in for the long term..

    So now at:

    Fundsmith 25%
    Lindsell Train Global Equity 25%
    RIT Capital 25%
    Shin Nippon 12.5%
    SMT 12.5%

    I've got a cash ISA transferring in so by April I'll have 33k to go in.

    I'd be interested on peoples views around allocations as it starts to build up.

    5 keeps things simple but I'm mindful that for example RIT is massively more diverse than Fundsmith/LT though that was also the whole point of it.
    • bowlhead99
    • By bowlhead99 3rd Mar 18, 1:02 PM
    • 7,987 Posts
    • 14,526 Thanks
    bowlhead99
    I've got a cash ISA transferring in so by April I'll have 33k to go in.

    I'd be interested on peoples views around allocations as it starts to build up.
    Originally posted by rathernot
    Well, I suggested two investment companies listed on the main market of the London stock exchange and you rejected them using the excuse that you preferred to stay with your relatively expensive fund platform rather than moving to one that offered a broader range of investment choices

    • rathernot
    • By rathernot 3rd Mar 18, 1:10 PM
    • 256 Posts
    • 74 Thanks
    rathernot
    It's not an "excuse" - for the moment it's a simple fact that Fidelity don't offer them so I couldn't buy them if I tried.

    Next year if I'm not using the Fidelity platform, which is quite likely, I'm open to that and will be looking into all the options people have suggested including those.
    • bowlhead99
    • By bowlhead99 3rd Mar 18, 1:20 PM
    • 7,987 Posts
    • 14,526 Thanks
    bowlhead99
    Yes it was just my initial thought on your earlier reply, which went around my head along the lines that: Fidelity doesn't usually work out to be the cheapest provider of stockbroker/ platform services at either the low end or the high end of the scale of assets that people might under administration, so why should 'not being able to get something on Fidelity' be a barrier... just change the Fidelity to something else.

    Maybe you had some sort of introductory offer when signing up with Fidelity which you have to give back if you leave them early? Otherwise not sure why it would be 'quite likely' you'll not be with them next year but want to be with them now?
    • rathernot
    • By rathernot 3rd Mar 18, 1:28 PM
    • 256 Posts
    • 74 Thanks
    rathernot
    It's through Cavendish so it's 0.25%.

    When you go look at who could be cheaper it gets interesting.

    IWEB for example are really cheap but they don't offer Lindsell Train, if they did I think I'd be with them.

    As you say I could just open a new ISA somewhere else in April but it's damned annoying to have to play musical chairs or juggle multiple accounts just to get the investments you want.
    • rathernot
    • By rathernot 3rd Mar 18, 1:31 PM
    • 256 Posts
    • 74 Thanks
    rathernot
    Oh Fidelity cap IT fees at 45 which can be good when you have a big pot of ITs.
    • ArchBair
    • By ArchBair 4th Mar 18, 2:23 PM
    • 95 Posts
    • 34 Thanks
    ArchBair
    Oh Fidelity cap IT fees at 45 which can be good when you have a big pot of ITs.
    Originally posted by rathernot
    Yes, Fidelity are excellent for ISA and SIPPS for IT's because as you say the fees are capped at 45 per annum and in the case of SIPPS they also have no drawdown charges or set up fees which adds value. For GIA there are no fees for IT's.

    Maybe you should consider selling Fundsmith and LT and reinvest in a global IT such as Monks?
    Last edited by ArchBair; 04-03-2018 at 3:53 PM.
    • StellaN
    • By StellaN 4th Mar 18, 3:51 PM
    • 217 Posts
    • 74 Thanks
    StellaN
    Yes, Fidelity are excellent for ISA and SIPPS for IT's because as you say the fees are capped at 45 per annum and in the case of SIPPS they also have no drawdown charges or set up fees which is adds value. For GIA there are no fees for IT's.
    Originally posted by ArchBair
    Yes, I have a SIPP with Fidelity but only hold IT's so its excellent value and as you mentioned the additional bonus is there are no drawdown charges which is very unusual. I don't think any other platform offer these rates for just holding IT's in a SIPP but I could be wrong?
    • rathernot
    • By rathernot 4th Mar 18, 4:00 PM
    • 256 Posts
    • 74 Thanks
    rathernot
    Yes, Fidelity are excellent for ISA and SIPPS for IT's because as you say the fees are capped at 45 per annum and in the case of SIPPS they also have no drawdown charges or set up fees which is adds value. For GIA there are no fees for IT's.

    Maybe you should consider selling Fundsmith and LT and reinvest in a global IT such as Monks?
    Originally posted by ArchBair
    Still looking at global options but Fundsmith and LT are two I specifically want and I'm not going to change my investments on the basis of 50 or so a year in fees (worst case) when the difference in return could and should be worth significantly more than that

    Suspect I'll end up with Interactive Investor as their annual fee is less than I'd be paying with Fidelity plus they seem to carry everything I've looked into.
    • forextc
    • By forextc 4th Mar 18, 7:50 PM
    • 62 Posts
    • 23 Thanks
    forextc
    I'm sure the OP won't be too worried about spending a bit more on the platform, given that he's happy to pay over the odds for the assets held in the ITs.
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