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Post by Fletchsmile on Feb 20, 2019 15:21:09 GMT 7
If you were investing outside Thailand and putting together a portfolio, what would be your first 3 automatic choices that you wouldn't hesitate to include and start you on your way?
Mine would be:
1. Lindsell Train Global Equity fund
2. Jupiter European fund 3. Royal London Sterling Extra Yield Fund
For the last one, it wouldn't get as high a weighting as the others. However, somewhere along the line I'd want some fixed income exposure in there, and that tends to be my fund of choice.
Unusually for me, no automatic place for Neil Woodford - for now at least. I've been a fan, and his main funds have been key holdings for over 20 years. For most of that time he would have been an automatic pick. The last year or so have been pause for thought though. Still core holdings, just not the auto pick without hesitation he used to be.
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AyG
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Post by AyG on Feb 20, 2019 18:03:52 GMT 7
In a sense, that's a focusless question. People have different investment objectives, different levels of risk tolerance, varying levels of natural income requirements.
However, three investments I own and am attached to are:
- Finsbury Growth & Income (managed by Lindsell Train, like your #1) - Independent Investment Trust (it's had a recent rough ride, but over the last 10 years has returned over 19%/year. I rate Max Ward very highly. It just worries me that he's rather old now and may retire. The trust's board has not revealed their succession plan.) - Pacific Assets (17%/year annualised over 10 years)
The latter two I've owned for over 10 years. FGT is a more recent investment.
My most recent investment is Caledonia Investments Ord. [CLDN]. It took quite a lot of research to convince me it's a good fit for me. It's a little bit more complex than a typical investment trust.
Other top investments I have owned for many years and like include AAS, JESC, WTAN, JMG (though I'm currently winding down my holding of JMG).
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Post by Fletchsmile on Feb 20, 2019 19:25:28 GMT 7
In a sense, that's a focusless question. People have different investment objectives, different levels of risk tolerance, varying levels of natural income requirements. Yes I wanted to keep it deliberately wide for ideas. Always useful in brainstorming ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
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AyG
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Post by AyG on Feb 20, 2019 21:03:45 GMT 7
It's curious how, of my 30 investments, 13 are investment trusts, and the top three I mentioned are all investment trusts, as are the other five investments I mentioned.
I'm beginning to wonder whether there is greater "friction" for me with investment trusts, i.e. I'm quicker to sell a unit trust undergoing a period of poor performance than an investment trusts - perhaps because of the differential costs associated with so doing, and subsequently reinvesting.
Also, with ETFs, I'm very much aware of costs, and will readily sell when a cheaper product comes along. For example, a year or two ago I happily sold my iShares TIPS and Index Linked Gilts ETFs and bought much cheaper Lyxor equivalents.
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Post by rgs2001uk on Feb 20, 2019 21:08:18 GMT 7
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Post by rgs2001uk on Feb 20, 2019 21:10:17 GMT 7
It's curious how, of my 30 investments, 13 are investment trusts, and the top three I mentioned are all investment trusts, as are the other five investments I mentioned. I'm beginning to wonder whether there is greater "friction" for me with investment trusts, i.e. I'm quicker to sell a unit trust undergoing a period of poor performance than an investment trusts - perhaps because of the differential costs associated with so doing, and subsequently reinvesting. Also, with ETFs, I'm very much aware of costs, and will readily sell when a cheaper product comes along. For example, a year or two ago I happily sold my iShares TIPS and Index Linked Gilts ETFs and bought much cheaper Lyxor equivalents. Amen brother, I have long ago come to the conclusion ITs are the way to go.
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chiangmai
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Post by chiangmai on Feb 21, 2019 7:57:33 GMT 7
My star performers have been Lindsell Train Global and Fundsmith....Baillie Gifford (BG) International and BG Managed follow next, as does Stewart Investors who now seem to be over their bad patch.
My dogs are Trump and trade war dependent Smith and Williamson is slowly recovering and may yet do some great things, ditto Schroder small caps.
Witan, Jupiter European and Royal London Sterling complete the picture, the I/L Gilts were a good hold for stability.
And since I'm now UK resident once again I now have my choice of platforms so I'm looking to reduce my costs and examining options closely.
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Post by Fletchsmile on Feb 21, 2019 12:28:11 GMT 7
In a sense, that's a focusless question. People have different investment objectives, different levels of risk tolerance, varying levels of natural income requirements. However, three investments I own and am attached to are: - Finsbury Growth & Income (managed by Lindsell Train, like your #1) - Independent Investment Trust (it's had a recent rough ride, but over the last 10 years has returned over 19%/year. I rate Max Ward very highly. It just worries me that he's rather old now and may retire. The trust's board has not revealed their succession plan.) - Pacific Assets (17%/year annualised over 10 years) The latter two I've owned for over 10 years. FGT is a more recent investment. My most recent investment is Caledonia Investments Ord. [CLDN]. It took quite a lot of research to convince me it's a good fit for me. It's a little bit more complex than a typical investment trust. Other top investments I have owned for many years and like include AAS, JESC, WTAN, JMG (though I'm currently winding down my holding of JMG). FGT is probably my favourite investment trust - definitely if talking UK equities. As you say managed by Lindsell Train who I rate very highly. I see it as the investment trust equivalent to Lindsell Train UK equity unit trust - their holdings and approach are very similar. That would also be one of my top UK unit trusts, and is a core holding for me. Just misses out on my Top 3, probably because of their Global Fund if I could only pick one ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
Worth noting that the unit trust is cheaper with only 0.51% ongoing charge/ TER (after 0.19% HL discount) compared to 0.67% ongoing charge for FGT. Also the unit trust has the advantage of no initial charge, no bid-offer spread, better liquidity and the certainity of always dealing based on NAV rather than the whims of the market on premiums/ discounts - FGT being at a small premium at the moment. Performance is very similar = both approx 72% over 5 years
I was looking to add to FGT recently - just working out what to sell and rearrange. I hold it via Singapore where my choice of unit trusts is much more limited. It's a very useful holding, and been very happy with it.
I'd like something in the IT space similar to Lindsell Train Global Equity too, by Lindsell Train. Unfortunately there isn't. Lindsell Train Investment Trust has done fantastic, but trades on such a massive premium, as well as a large holding in its own shares.
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I also like PAC - now part of the Stewart/First State Group. Again Stewart Investors/ First State I rate highly. Never got round to holding it yet though. In the UK I hold First State Asia Focus. Similar reasons to aboev in the choice of UT vs IT. First State Asia Focus is a newer fund but comparable over 3 years. Ongoing charge/TER is again cheaper for me on the unit trust though at 0.75% versus 1.25% on PAC.
Only reason I haven't bought PAC via Singapore is that I hold a First State/Stewart SGD Asian unit trust. The unit trust in Singapore is more expensive, but I can borrow against it, whereas they won't let me use an investment trust to borrow against. Being able to borrow up to 70% of the fund value at a rate of only approx SGD 2.8% makes the difference. Really wish they would lend versus PAC though as I could borrow GBP at 1.5%, and I think PAC is better than the SGD unit trust version
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CLDN looks interesting - just started looking into it. They compare returns to FTSE-All share but I guess that's just a comparison on returns. The two are nothing like each other. Interesting global mix as well as unquoted/quoted and fund investments ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
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Post by Fletchsmile on Feb 21, 2019 12:52:45 GMT 7
Very tempted to add Scottish Mortgage to my investment trusts held via Singapore. Always seems to be up there as a top global performer. Witan is quite a nice solid relaible fund to hold albeit a bit mediocre
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I'm generally cutting back these days on the sector style funds:
- Finally sold the remainder of my Blackrock Gold and General fund recently. Had already sold First State Resources a while back and couple of years back sold JPM Natural resources.
- Likely to cut BIOG-Biotech growth trust soon too
That would leave me with a small holding of BRWM-Blackrock World Mining out of all the technology, resource, mining, etc sector funds I used to hold. BRWM has a nice div, which I lazily collect in Singapore, plus keeps a little exposure to the sector.
Generally I prefer wider scope funds these days, as there's nowhere to hide for the funds when their sector is out of favour - similar to single country funds which I've also generally cut. JRS-Russian being an exceotion again
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Post by rgs2001uk on Feb 21, 2019 20:41:23 GMT 7
In a sense, that's a focusless question. People have different investment objectives, different levels of risk tolerance, varying levels of natural income requirements. However, three investments I own and am attached to are: - Finsbury Growth & Income (managed by Lindsell Train, like your #1) - Independent Investment Trust (it's had a recent rough ride, but over the last 10 years has returned over 19%/year. I rate Max Ward very highly. It just worries me that he's rather old now and may retire. The trust's board has not revealed their succession plan.) - Pacific Assets (17%/year annualised over 10 years) The latter two I've owned for over 10 years. FGT is a more recent investment. My most recent investment is Caledonia Investments Ord. [CLDN]. It took quite a lot of research to convince me it's a good fit for me. It's a little bit more complex than a typical investment trust. Other top investments I have owned for many years and like include AAS, JESC, WTAN, JMG (though I'm currently winding down my holding of JMG). FGT is probably my favourite investment trust - definitely if talking UK equities. As you say managed by Lindsell Train who I rate very highly. I see it as the investment trust equivalent to Lindsell Train UK equity unit trust - their holdings and approach are very similar. That would also be one of my top UK unit trusts, and is a core holding for me. Just misses out on my Top 3, probably because of their Global Fund if I could only pick one ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
Worth noting that the unit trust is cheaper with only 0.51% ongoing charge/ TER (after 0.19% HL discount) compared to 0.67% ongoing charge for FGT. Also the unit trust has the advantage of no initial charge, no bid-offer spread, better liquidity and the certainity of always dealing based on NAV rather than the whims of the market on premiums/ discounts - FGT being at a small premium at the moment. Performance is very similar = both approx 72% over 5 years
I was looking to add to FGT recently - just working out what to sell and rearrange. I hold it via Singapore where my choice of unit trusts is much more limited. It's a very useful holding, and been very happy with it.
I'd like something in the IT space similar to Lindsell Train Global Equity too, by Lindsell Train. Unfortunately there isn't. Lindsell Train Investment Trust has done fantastic, but trades on such a massive premium, as well as a large holding in its own shares.
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I also like PAC - now part of the Stewart/First State Group. Again Stewart Investors/ First State I rate highly. Never got round to holding it yet though. In the UK I hold First State Asia Focus. Similar reasons to aboev in the choice of UT vs IT. First State Asia Focus is a newer fund but comparable over 3 years. Ongoing charge/TER is again cheaper for me on the unit trust though at 0.75% versus 1.25% on PAC.
Only reason I haven't bought PAC via Singapore is that I hold a First State/Stewart SGD Asian unit trust. The unit trust in Singapore is more expensive, but I can borrow against it, whereas they won't let me use an investment trust to borrow against. Being able to borrow up to 70% of the fund value at a rate of only approx SGD 2.8% makes the difference. Really wish they would lend versus PAC though as I could borrow GBP at 1.5%, and I think PAC is better than the SGD unit trust version
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CLDN looks interesting - just started looking into it. They compare returns to FTSE-All share but I guess that's just a comparison on returns. The two are nothing like each other. Interesting global mix as well as unquoted/quoted and fund investments ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
Used to hold them years ago, solid dependable plodders, you wont get rich overnight, but you wont lose your ass overnight, I consider them to be part of a pensioners portfolio, I sold them and split the money between Brunner and Bankers.
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chiangmai
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Post by chiangmai on Feb 22, 2019 14:48:46 GMT 7
FWIW I think they are very different funds, Fundsmith is highly US centric at 64% whereas LT Global is spread more evenly between US, UK and also includes Japan.
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Post by Fletchsmile on Feb 22, 2019 15:34:31 GMT 7
FWIW I think they are very different funds, Fundsmith is highly US centric at 64% whereas LT Global is spread more evenly between US, UK and also includes Japan.
It's a good point to bring out. Although the investment styles and performance have been similar the geographical split is not.
That's actually another reason I'm less keen on Fundsmith, as I think I've mentioned before. With 2/3 s in the US, I think why not try and harness that 2/3s in a different way. It strikes me more suitable for someone wanting US exposure with a bit of variety for something else. Whereas I'm more global wanting some US expsoure.
There's some further interesting expansions worth some thought on the geographical splits:
e.g.
Lindsell Train Global tends to focus on 3 main markets + Netherlands. Currently US: 34%, UK: 33%, Japan: 21%, Netherlands 7% (gone down a bit from what I recall)
Fundsmith focuses on the US 63%, UK 19%, Spain/Denmark/France/Finland 16 to 17%
Over 5 years the US (S&P 500) has done quite a bit better than the UK (FTSE and FTSE 250). Japan hasn't been as good as the US, and Europe been weak.
You might have expected Fundsmith to have therefore done better because of that large US factor. But over 5 years they were similar. LT was interesting ahead over 3 years.
Both tend to have bottom up styles rather than top down. i.e pick companies first then macro/ country later. But you still might have expected the strong US markets to have had more pronounced effects.
Then there's the currency aspect, US and USD dollar holdings have appreciated in value in GBP terms, so Fundsmith benefited from that more. Yet LT still held its own.
So US has had a good time in recent years, as has USD. What's going to happen though as that changes, UK and Europe pick up and US and USD weakens? Feels like Fundsmith has had more in its favour in recent years because of the geography and USD, but you have to wonder going forward. LT feels more balanced to deal with all eventualities to me ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
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Post by Fletchsmile on Feb 22, 2019 22:22:45 GMT 7
Just rearranged my investment trust holdings a little.
Added to FTG - if it's one of AYG's favourite funds how could I not
Finally bought SMT from Rgs top 3. Have looked at it so many times in recent years.
I also added JPM Claverhouse which I 've liked for a while and wanted for the yield, given the other 2 are low yields. I like to keep my IT div portfolio above a 3% yield which is double the GBP borrowing cost of 1.5% if I use the facility.
Sold: BIOG - as mentioned in posts above. I've generally moved away from holding these specialised funds
Sold: LWI - although I originally bought for the div yield, Lowland's total return has been poor in recent years
Not big holdings but needed changing.
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chiangmai
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Post by chiangmai on Feb 23, 2019 6:47:25 GMT 7
An observation regarding Finsbury versus LT UK Equity......the two funds appear to track each other to within a hairs breadth, the only question is whether to hold the fund in an IT or in an OIEC, the latter avoids any premium issues.
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AyG
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Post by AyG on Feb 23, 2019 14:40:53 GMT 7
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