Lindsell Train - 22% avg annual returns?

Investing / Portfolios
1

Interesting funds from Lindsell Train, anyone with them?.

http://www.lindselltrain.com/funds/lindsell-train-global-equity-fund.aspx
http://www.lindselltrain.com/~/media/Files/L/Lindsell-Train-V2/reports/ltglobal-equity-fund/LTGEF_Latest.pdf

… Taking the past 5 year results from the PDF above, if my numbers are correct the average return is 22%.

Although they are stock picking, they have 25-30 in the portfolio and have very long term view with top companies. I know its against the normal index way, but you can’t ignore the results. Yes, the TER is high and directly investing with LT they’ll charge setup fees etc and take 4% of your stake(although through someone like Fidelity I think this can be avoided - not sure), but with the average 5yr return its quite attractive.

Interview with Nick Train:

Thoughts? Comments?

2

22% is not so impressive in a period when everything has been going up.

Here’s a chart for VTI for the last 9 years (USD CAGR 16.3%):

2018-03-26%2010_41_39-Microsoft%20Edge
c612544e564757ce0fbf63ca7c655831fb2739fc.png1089×547 37.9 KB

On English Forum the most popular choice for active fund appears to be Fundsmith. It’s a big discussion if you should ever trust active funds with your money and it’s interesting to see how the current stars will shine when the next crash comes.

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nice point @Bojack!
may i add the brute force approach: if youst enough people try, the success distribution predicts those winners. there is always some on the end ot that distribution… but who is it going to be next year? next 5 years? next 10 years? i bet you wont put your money on this bet :smiley:

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The guy does seem to have a skill, he’s outperforming MSCI World by about 4-5% in terms of CAGR, that’s not insignificant even when the benchmark itself delivers mid-teens. Plus he has a nice defensive/staples heavy portfolio; not that it’d protect you from a crash, but better than nothing
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MC3L

I’m following both guys’ stock picks as a source of ideas of what to check out. But as for investing, their 1% fee in today’s index funds scene is obscene. I’ll buy and hold the stuff myself for practically free with an added comfort of owning the stocks directly. The style of funds - buy and hold with low activity lends itself naturally to copying

Nevertheless I have some position in Fundsmith’s emerging market fund - I like the portfolio composition a lot better than “mainstream” India/EM funds and you can’t really buy this shit directly yourself without jumping through a lot of hoops and loops unlike developed markets stocks. So far it has not outperformed however

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good comments thanks. Apart from the top 5-10 positions shown on the website (Unilever, Diageo etc) is the full 25-30 holdings making up the portfolio public info? Couldn’t find it…

6

In annual reports. American holdings (but LT is not that heavy into US) you can also get on a quaterly basis from 13f filings

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Great. in this case for info they are listed on page24 -
http://www.lindselltrain.com/~/media/Files/L/Lindsell-Train-V2/reports/annual-report/global-equity-fund/Lindsell%20Train_GF_Interim%20accounts_20170630.pdf

Buy and sell are listed on 26&27… I guess there is no way to find out the buy and sell earlier than the annual report? time to work on some excel charts i think!

Purchases GBP
Walt Disney Co 40,865,898
Mondelez International Inc 38,899,572
Diageo PLC 34,055,264
Intuit Inc 26,680,488
PepsiCo Inc 25,916,491
Heineken Holding NV 20,117,975
Astellas Pharma Inc 18,672,350
Pearson PLC 17,827,713
Unilever PLC 17,537,291
Shiseido Co Ltd 16,475,054
Kao Corp 11,909,711
PayPal Holdings Inc 11,196,326
RELX NV 10,270,229
Japan Exchange Group Inc 10,134,716
London Stock Exchange Group PLC 9,048,106
eBay Inc 8,740,038
Ito En Ltd 6,368,551
World Wrestling Entertainment Inc 4,601,733
Brown-Forman Corp 3,072,584
International Speedway Corp 2,796,091

Sales GBP
Shiseido Co Ltd 17,782,384
Intuit Inc 6,440,167
PayPal Holdings Inc 4,982,774
Kao Corp 2,072,049
Walt Disney Co 1,411,976

8

Follow their monthly factsheets, they usually discuss recent portfolio changes. Morningstar also seems to be getting some data about monthly changes from somewhere

Annual reports with data delayed by a year is pretty much useless indeed except for knowing the total composition

9

fund still seems to be making good progress so far in 2018 - nearly 15%!
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MC3L&tab=1

Anyone have these in their portfolio?