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Post by Fletchsmile on Mar 23, 2019 15:05:50 GMT 7
recent write up by HL on their UK equity fund
One of my favourite funds I hold and would be pick first pick for a UK fund for me these days.
Lot of similarities to FGT Investment trust also managed by them which is my one of my favourite ITs
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Post by Fletchsmile on Apr 17, 2019 13:21:48 GMT 7
Another large stake. There was quite a bit of fuss about LT being a large shareholder in Hargreaves Lansdown - a lot of it unfounded in my view. This investment in Schroders highlights to me its the sector ane the investments that are driving investments rather than conspiracy theories =================================================================== Nick Train sinks £256m into Schroders as he pushes US invasionIn the latest of a series of punchy recent moves, Citywire AA-rated Nick Train has put around £256 million into Schroders, upping his stake by more than a third. The purchase installs Train as the second largest holder of the stock after the Schroder family, with a 10% stake in the business worth £695 million at a price of £30.75, off from 2018’s record high of £37.73. ..... Train (pictured) has made a series of hefty purchases this year, having spent almost £500 million this year to near-double his overall investment in Hargreaves Lansdown to nearly £1 billion, becoming second largest holder behind co-founder Peter Hargreaves. ..... citywire.co.uk/wealth-manager/news/nick-train-sinks-256m-into-schroders-as-he-pushes-us-invasion/a1219681?ref=wealth_manager_all_stories_list
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chiangmai
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Post by chiangmai on Jul 1, 2019 23:44:04 GMT 7
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Post by Fletchsmile on Jul 2, 2019 11:17:32 GMT 7
I think that's an article from a few weeks/months back just that Money Morning put the current date near the top of the page
For me I still prefer:
1st LT Global 2nd SMT - Scottish Mortgage 3rd Fundsmith
It would depend on portfolio size though and number of funds.
I don't like too high a concentration in any one fund, in case things take a turn for the worse, so I added Fundsmith when LT Global was becoming quite heavily weighted in my portfolios.
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AyG
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Post by AyG on Jul 2, 2019 14:07:14 GMT 7
For me I still prefer: 1st LT Global 2nd SMT - Scottish Mortgage 3rd Fundsmith I have been looking for something similar to LT Global in investment trust form, i.e. global, small number of holdings of high quality companies, low turnover, and excellent performance. And since I'm looking for an investment trust, I don't want to pay a ridiculous premium to NAV. I did look at SMT, which has had excellent performance, but I see a couple of holdings in the top 10 that disturb me, namely Tesla and Netflix. The closest equivalents I could think of are Monks (managed by Baillie Gifford), and Mid Wynd (managed by Artemis). Is there a similar trust that I've overlooked? Thanks.
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Post by Fletchsmile on Jul 2, 2019 15:16:51 GMT 7
I've also been looking at Global ITs recently.
Monks is worth a look, as you mention, being from the same Baillie Gifford stable as SMT. But if you start second guessing holdings then you probably have to think do you want Naspars as the largest holding in Monks? Plus an investment in Baillie Giffords Schallion Fund - unlisted tech stock fund? The unlisted tech fund maybe. Naspars don't know Monks is spread thinner though, so perhaps less impact of such bets. SMT is more concentrated and its top 10 accounts for just over half the fund, including 10% in Amazon its largest, whereas Monks' top 10 is just under a quarter, with Naspars at just over 3% largest. Not sure how many actual holdings they have in total.
You probably looked at Manchester and London. Has good performance, but I wasn't keen on the Big Tech focus after recent strong runs. Amazon 16%, Alphabet 14%, Microsoft 11.5% etc. Plus around 80% in the US and 18% in China,
MidWynd was quite interesting, but big focus on US 53% and Japan 13%, both of which I already have other investments I'm happy with.
Did you also look at the IT Global Income sector in addition to IT Global? I know you're not particularly looking for income funds, but it adds half a dozen other funds.
I hold JPM Global Growth & Income and Scottish American. The fact they paid dividends was relevant to me though to cover my interest expenses.
For me SCAM also complements SMT quite nicely because of the geographic split. Both being from Baillie Gifford. SMT is 51% US, CN 23% and EU 21%, whereas SCAM is EU 36%, US 27%, GL 16% Asia 14%. No real overlap in their Top10 holdings. SCAM is less tech focused SMT's last 5 years have been quite a bit stronger than SCAM. But US and CN have done relatively well in recent years, particularly the Tech stock side. Whereas SCAM's performance in recent years has been more geared to EU, other Asia and less tech. Going forward EU looks cheap compared to US, and the rest of Asia has some catching up to do. SCAM has done well considering the markets its in. They tend to lag the US, but when they catch up SCAM could be well placed. So looking forward rather than just historic performance SCAM fits nicely with SMT.
Problem with all of them at the moment are the premiums they're trading at. Not so bad if swapping one premium on an IT for another, but less attractive for new money
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AyG
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Post by AyG on Jul 3, 2019 10:58:46 GMT 7
^^^
Naspers is trading on a P/E ratio of about 25. I'd be far happier with that than Amazon on 85, or Netflix on 134.
Schiehallion Fund is perhaps similar in a way to Woodford's Patient Capital, investing in unquoted, illiquid investments, in the hope that a few of them pay off handsomely. Having illiquid investments inside an investment trust isn't as much of an issue as it is with open ended funds, and at around 2% it doesn't bother me.
Am I alone in finding it difficult to take a trust with the ticker "SCAM" seriously? Anyway, it looks interesting. More research required. I actually rather like the 13% allocation to physical property, even though it is all in the UK. Pity about the premium. And damn the Retail Distribution Review for encouraging the hoi polloi to invest in investment trusts.
Thanks.
BTW, is the Baillie Gifford website the worst investment trust website out there? Absolutely horrendous, both aesthetically and functionally.
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Post by Fletchsmile on Jul 3, 2019 13:50:21 GMT 7
I'm not particularly worried about the holdings of the funds. Generally they should know more than me given the research departments they have, compared to my limited time. I focus more on the funds structure, style, FM house, manager, performance, etc Though I do look at top 10 out of interest Comparing P/Es for Amazon for example won't be that meaningful. PEG may be a bit more useful. If someone looked at the profitability of Amazon, it's grown phenomenally from half a billion to over 10 billion in the last 3 years. Revenue has over doubled. They have gone into new areas such as drug distribution, and more potential to expand further. Most analysts rate it as a buy or strong buy. That's my overview. I don't know much about Naspers at all. On Tesla, SMT invested over 5 years ago so have likely done very well. Tesla is at an interesting point though now, whether it can step up further or not. It has hit other key milestones many thought it never would, though often late. The ground it has covered is huge though, so a few delays on such massive steps hasn't mattered too much in the past. I'm sure they've taken all that into account, much more than my cursory thoughts I don't particularly mind on Schiehallion as it's small. I do wonder why they had invested. The holding is only around 2%, so won't significantly shift performance. A lot fo BG's ITs like SMT have a mandate that allows them to invest directly in unquoteds should they choose. It's a fund for institutions only I believe, so were BG just backing one of their own? was it really arms's length a decision. I've mixed feeling about cross investments. One element in particular is the double fee charging for ITs as they are separate companies. For UTs they can often more easily find ways to reduce double charges by waiving if necessary. No unit holder loses out just the manager. But for separate listed companies that is a bit messier.
But bottom line, Schiehallion is a small position. -------- Yes BG's website is horrendous. Looks like they've tried to make it look like Windows 10 apps format and failed badly, as you say in terms of aesthetics and functionality. -------- All 3 of SMT, Monks, SCAM seem to complement each other. They are all global and their mandates quite wide, but they tend to differ in choices. SCAM's name. Yes I'm about to offload HINT and will likely place funds between those 3 in some way. Even HINT trades at a small premium. It's very difficult to find something comparable to LT Global UT in the IT sector. I've looked many times, and would like something similar in the same way FGT and LT UK equity are so simiar. SMT is about closest to LT global. The other 2 BG funds are less concentrated. If you do find though I'd be interested too ---------------------
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Post by Fletchsmile on Jul 3, 2019 16:34:39 GMT 7
^^
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AyG
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Post by AyG on Jul 3, 2019 16:40:07 GMT 7
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Post by Fletchsmile on Jul 3, 2019 16:51:43 GMT 7
testing
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AyG
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Post by AyG on Jul 3, 2019 19:42:48 GMT 7
For me I still prefer: 1st LT Global 2nd SMT - Scottish Mortgage 3rd Fundsmith [/div][/quote] A thought just occurred to me (it happens sometimes) ... The press has reported endlessly on Mr. Woodford, turning him into the UK's best known fund manager, first for good performance (and the money rolled in), but more recently for his problems. Then there are other star managers such as Messrs. Lindsell, Train and Fundsmith. The money's rolled in there, too. A few years ago Slater (Mark, not Jim) was the darling of the financial press. Now you hardly see him mentioned. Perhaps today's stars will go the same way - not stars but meteors.
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Post by rgs2001uk on Jul 3, 2019 21:35:27 GMT 7
For me I still prefer: 1st LT Global 2nd SMT - Scottish Mortgage 3rd Fundsmith I have been looking for something similar to LT Global in investment trust form, i.e. global, small number of holdings of high quality companies, low turnover, and excellent performance. And since I'm looking for an investment trust, I don't want to pay a ridiculous premium to NAV. I did look at SMT, which has had excellent performance, but I see a couple of holdings in the top 10 that disturb me, namely Tesla and Netflix. The closest equivalents I could think of are Monks (managed by Baillie Gifford), and Mid Wynd (managed by Artemis). Is there a similar trust that I've overlooked? Thanks. Does this float your boat? www.hl.co.uk/shares/shares-search-results/a/alliance-trust-plc-ordinary-2.5p-shares
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Post by Fletchsmile on Jul 3, 2019 23:16:00 GMT 7
For me I still prefer: 1st LT Global 2nd SMT - Scottish Mortgage 3rd Fundsmith
Yes, it had occurred to me too though with less poetic imagery. Which led to the last line of that original quote and brings us full circle
With Woodford and Lindsell Train I got in before they became star fund managers. Nice to be validated, but at the same time when they get too popular it can lead to problems
Nothing lasts forever.
I'm hoping that doesn't apply to LT's demise just yet though, as they say bad things often come in 3's. Woodford use to be an automatic choice - but no longer. Darwall used to be an automatic choice - but no longer. Just hope Lyndsell Train's meteor hit is a few lunar years away yet.
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chiangmai
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Post by chiangmai on Jul 5, 2019 6:54:16 GMT 7
Interesting to receive an email from HL just now saying they have removed LT Global and LT UK Equity from their wealth 50 list, the reason being that both funds contain a substantial volume of HL shares.
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