Type: Offshore Oeic
Aim: Growth and income by investing global in a concentrated portfolio of equities mainly in developed countries
Minimum investment: Lump sum £1,500 or currency equivalent
Investment split: 100% in global equities
Place of registration: Dublin
Charges: Initial up to 4.5%, annual 1.15%
Commission: Agreed between adviser and client
Tel: 020 7802 4700
Boutique firm Lindsell Train has brought out its first global equity fund, which contains 20 to 25 of fund managers Michael Lindsell and Nick Train’s best global stock ideas. It will be managed in the same way as the firm’s existing Japan and UK equity portfolios, with a focus on buying and holding exceptional businesses that are undervalued.
Kelvin Lillywhite, a financial consultant at Albany Financial Consultants, has concerns that the fund has launched into a crowded sector and this is reflected in his average rating for the fund’s suitability to the market. He says: “Any new fund offers further choice in a given sector, but the global equity sector is a pretty crowded place so consumers and IFAs already have a huge amount of choice.”
However, Lillywhite likes the unconstrained approach to stock selection, which focuses on exceptional companies rather than specific regions or sectors.
“Having said that there are a number of global funds that take this approach. The question is whether Lindsell and Train can choose the correct companies. If you look at the performance of their existing funds then evidence would suggest they can,” he says. He adds that the charges also seem to be reasonable. Commission is agreed between the adviser and client, so it does not form part of Lillywhite’s review.
Turning to the potential drawbacks of the fund, Lillywhite says: “There does not seem to be anything totally unique about the fund. The approach is admirable, but not unusual these days. The history of the group suggests the managers can run it well, but there is really nothing outstanding about this particular offering.”
Lillywhite feels the main competition is too numerous to mention, as the global equity sector is so crowded. “For good long-term performance and well-known name to IFA’s. M&G global growth is a solid fund,” he says.
He concludes that his 7/10 overall rating for the fund would have been lower had Lindsell Train not had good track records with other funds.
Suitability to market: Average
Investment strategy: Good