Reply With QuoteYes, HL are very keen.
HL do them but my impression is that their fees are quite high. Anyone any suggestions as to a more cost effective way in?
Thanks
Yes, HL are very keen.
Cheers,
Neil.
Keen as in competitive cost wise or in some other way?
David
I've invested the majority of my sipp into the Lindsell Train UK Equity and Global Equity through HL and I think the fees are very competitive and HL would be the cheapest way to purchase and hold these funds.
The initial fee is 0% from LT and the HL dealing charge is free and the ongoing annual charge from LT is 0.72% but dealing through HL this is reduced to 0.52%.
Even if you feel the HL 0.45% annual fees are high, when you factor in the annual % growth of the LT fund which has outperformed most of the market and the added historic yeild through divided payment of 2% you probably won't even notice it.
HL is very easy to deal with and has a great online content.
Many thanks, good to hear from someone who actually does it. They certainly seem to have done well these last few years. Hopefully no reason for that to change.
It wasn't a name I'd ever heard of until an acquaintance mentioned them a few months back. I put a few £ in to the UK equity fund although it's a bit early to draw any conclusions!
There are plenty of (free) online resources where you can compare historic performance against other funds and indices. Of course, past performance is no guarantee for the future ....
I've got my investment in LT through HL. Considering it's just over 100% in profit, the charges seem negligible
Just that HL seem to push them at every opportunity.Originally Posted by DavidL
Cheers,
Neil.
I’ve been in both the UK Equity and Global Equity funds for a few years. Returns have been excellent.
As others have already noted - access via Hargreaves Lansdown will give a big discount on the fees.
I use LT funds all of the time and generally for all of my clients where appropriate. (I manage about £400m across funds, Investment Trusts, ETF's, Equities, Bonds etc.)
The excellent and top quartile performance returns on the LT funds are quoted net of fees, so does it actually matter if they are indeed a little higher than normal (which I actually think they are not), the Group produce the goods. The alternative for investors is of course to use funds with low fees and not achieve the same performance returns that LT produce. Not a very sensible argument for saving the odd 0.1-0.2% in annual fees methinks !
However, agree, fund supermarkets or HL are a cheaper way in for private clients.
Interestingly the Global & UK funds actually have substantial holding in Hargreaves Lansdown, which is declared of course:
http://www.hl.co.uk/funds/lindsell-train
Here are a couple of articles which refer to the importance of HL performance on the funds:
http://citywire.co.uk/wealth-manager...n-year/a874450
http://www.whatinvestment.co.uk/nick...rowth-2553617/
It all seems a bit circular though. Given the fall from grace of the two megastars HL previously touted (Woodford & Bolton) let's hope this train stays on the tracks.
I would be interested to hear of any bonds you would recommend at the moment.
Beware 2019 a recession is a coming, you have been warned. I would suggest safety first and be ready to buy back in at the bottom.
In all seriousness, we are now st the end of a 9 year recovery cycle so 2019 will be ten. We are due the hit.
Wise words. Hence my point earlier of HL pushing the Lindsell Train funds at any opportunity.
I'd always take HL's recommendations with a pinch of salt, I remember their Tech fund choices.
You are right about Woodford and Bolton too. Antony Bolton earned me a lot of money in the old Fidelity Special situations days and then thought he could make it big in China - big mistake!
Cheers,
Neil.
I wouldn’t write off Neil Woodford yet; his new funds haven’t been going that long. Judge them over a full economic cycle.
Also recommend Fundsmith (amazing growth over past 5-6 years ) as well as Marlborough fund managers have some great funds too
Lindsell Train funds seem very popular and HL do seem keen to advertise (probably rebates lol) but they have done exceptionally well over past 5 years.
^^^ This.
I transferred a small (£3k ish) pension pot from a previous employer into a HL SIPP a few years ago... half went into Lindsell Train UK Equity and the other half into a Japan Equity Index fund. Both have gained in excess of 70% since August 2014.
As mentioned, fees are reduced through HL; 0.52% for the UK fund and just 0.11% (!!!) for the Japan fund.
I'm losing patience with his Patient Capital fund! Thankfully didn't invest a massive amount.
Yes- it’s somewhat disappointing. However, last time I looked, the fund was trading at a significant discount (difference between NAV& Share Price). So I guess it’s more to do with the market that his investment performance.
Giles Hargreave is my favourite fund manager.
Cheers,
Neil.
Yes, his special situations fund has had unbelievable growth over the past 30 years.
Cheers,
Neil.
Is there a link Jonny? Special situation fund seems a surprisingly common term.
(I wonder if there might be a joke here somewhere but if there is I'm missing it).
Thanks
Marlborough Special situations.
Off you go.
Cheers,
Neil.
My best performing fund. +160% in 6 years
Anyone still owning shares in the Patient Capital Fund should read today's analysis in FT Alphavile: Inside BenevolentAI: the $2bn tech company backed by Neil Woodford (free registration required).
It appears that the Patient Capital Fund might have been victim to a massive fraud perpetrated by its manager Neil Woodford. And it doesn't look like the BenevolentAI situation is the only questionable holding in this particular fund. The current listed price (31% discount to NAV) looks like a very good price if only half of these allegations turn out to be true.
Someone who lies about the little things will lie about the big things too.
Follow Warren Buffetts advice and pop 90% into an index tracker of the US stock market and 10% in Bonds. Low fees and outperforms majority of fund managers, apparently.
Interesting thread I have Lindsell Train Global & Legal & General US tracker at HL..see what happens. Not pouring money in at the moment - sudden spikes up in gold can be an indicator of bad things to come..we'll see in the coming months
That Woodford thing looks pretty dodgy, especially them not allowing people to remove funds.
A lot of people blindly followed the "guru" and have come unstuck, also HL have always been very fulsome in their praise for him and have been left with egg on their faces.
TBH I have always been a bit suspicious of their Wealth 50 or whatever, who knows if any collusion?
Cheers,
Neil.
It almost seems like the media has played a part in causing a "run on the fund" and due to unlisted investments that are harder to liquidate I can understand why the fund withdrawal would be temporarily suspended.
In order to be in the Wealth 50, a fund would have to offer HL customers an exclusive discount (supposedly Fundsmith refused hence why it isnt in the Wealth 50)
Yes, a lot of investment is down to confidence at the end of the day.
Interesting about Fundsmith and the Wealth 50 as I have often had doubts about its veracity behind the scenes.
Cheers,
Neil.
It’s not the first time I’ve heard this.
Sent from my iPhone using TZ-UK mobile app
It's complete nonsense, nevertheless.
There are rules for UCITS funds about how much of their capital they are allowed to invest into illiquid stocks. Woodford circumvented those rules with creating funny Guernsey 'listings', declaring these holdings liquid when in fact they were not. Similar in the Patient Capital Trust, which is effectively a solid block of frozen illiquid stocks, with a very interesting strategy to upvalue these positions with questionable reasonings. When this is all over, the courts will decide if fraud was committed or not.
To lay the blame for the current troubles on the media is akin to blaming umbrellas for the bad weather.
Last edited by Raffe; 27th June 2019 at 21:05.
Someone who lies about the little things will lie about the big things too.
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