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Vanguard Global Equity
Tom Bards
Posted: 15 April 2018 10:31:21(UTC)
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Anyone own this fund?

I'v been looking for another core holding and came across this. Seems to have very little attention, fund size is only £21 Million but looks to have a good range of holdings. It looks to be managed by Baillie Gifford so not sure how Vanguard comes into it, perhaps that is why the fund is still small in size
Frenchman 96
Posted: 15 April 2018 13:50:42(UTC)
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Tom

Go direct to the Vanguard site, lot's of info and charges are low.
Balvenie
Posted: 15 April 2018 19:03:55(UTC)
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-7.09% in 3 months.
Tom Bards
Posted: 15 April 2018 20:56:52(UTC)
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Balvenie;60659 wrote:
-7.09% in 3 months.



Somewhat misleading, pretty much everything is down in the last three months except a select few.
Tim D
Posted: 15 April 2018 21:33:49(UTC)
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It's one of Vanguard's actively managed funds (they do have a few, despite being mainly known for their cheap tracker funds and ETFs).

If you look at the last annual report trying to figure out what it's trying to do, this is about the most concrete thing you get:

Quote:
The Fund typically
invests in a diverse range of companies representing
different economic sectors and industry groups across
the spectrum of large-, mid- and small-cap value
securities, chosen mainly on the basis of bottom-up
(fundamental) stock analysis and research. The
Fund’s country, sector and industry weightings are
not driven by top-down (macroeconomic) views.
The Fund’s holdings will comprise a mix of growth
and value stocks selected from a broad range of
the world’s developed and emerging markets.


0.6% OCF; considerably more than Vanguard's global passives, but probably cheap compared with the rest of the actively managed fund universe. Can't really see the appeal myself... but I imagine these things are designed to appeal to punters who've heard too much passive-bashing from active managers to go all-in on trackers, but like the idea of reducing charges. But Vanguard have their own paper making a case for active management here.
Alan Selwood
Posted: 15 April 2018 22:46:32(UTC)
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0.6% is dearer than Scottish Mortgage Trust (run by Baillie Gifford), and several of the other mainstream active trusts (Temple Bar, to name but one of several).
Tom Bards
Posted: 15 April 2018 23:10:40(UTC)
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Alan Selwood;60679 wrote:
0.6% is dearer than Scottish Mortgage Trust (run by Baillie Gifford), and several of the other mainstream active trusts (Temple Bar, to name but one of several).



Scottish Mortgage Trust costs 0.95%

Temple Bar costs 1.37%
3 users thanked Tom Bards for this post.
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Tyrion Lannister
Posted: 15 April 2018 23:28:02(UTC)
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Tim D;60671 wrote:
It's one of Vanguard's actively managed funds (they do have a few, despite being mainly known for their cheap tracker funds and ETFs).

If you look at the last annual report trying to figure out what it's trying to do, this is about the most concrete thing you get:

Quote:
The Fund typically
invests in a diverse range of companies representing
different economic sectors and industry groups across
the spectrum of large-, mid- and small-cap value
securities, chosen mainly on the basis of bottom-up
(fundamental) stock analysis and research. The
Fund’s country, sector and industry weightings are
not driven by top-down (macroeconomic) views.
The Fund’s holdings will comprise a mix of growth
and value stocks selected from a broad range of
the world’s developed and emerging markets.


0.6% OCF; considerably more than Vanguard's global passives, but probably cheap compared with the rest of the actively managed fund universe. Can't really see the appeal myself... but I imagine these things are designed to appeal to punters who've heard too much passive-bashing from active managers to go all-in on trackers, but like the idea of reducing charges. But Vanguard have their own paper making a case for active management here.


You sound like an American Management Consultant! Why restrict yourself to the mere stock market whven the entire universe is out there!

Some Vanguard ETFs are good value but I don’t think they’ve any credibility wrt managed funds.
Tim D
Posted: 16 April 2018 09:15:11(UTC)
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Tom Bards;60682 wrote:
Alan Selwood;60679 wrote:
0.6% is dearer than Scottish Mortgage Trust (run by Baillie Gifford), and several of the other mainstream active trusts (Temple Bar, to name but one of several).


Scottish Mortgage Trust costs 0.95%

Temple Bar costs 1.37%


To compare like with like, the Vanguard PRIIP info for this Global Equity fund (here) claims there's another 0.1% in transaction fees to add on top of that 0.6% OCF, for a "total cost of investing" of 0.7%.
Tim D
Posted: 16 April 2018 09:19:32(UTC)
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Tyrion Lannister;60683 wrote:
Why restrict yourself to the mere stock market whven the entire universe is out there!


Hmmm... now you've got me wondering how many decades/centuries it'll be until "global" trackers are looking very parochial and investors will be buying an interplanetary tracker to get exposure to businesses incorporated on the moon/Mars/the asteroids etc...
Malcolm Beaton
Posted: 16 April 2018 09:36:46(UTC)
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Hi
Vanguard has a Global Stock Fund -Index Tracker-0.35 Basis points to run
Fire and forget!!!!
All info on Vanguard website
xxd09
Sara G
Posted: 16 April 2018 10:43:33(UTC)
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Tim D;60694 wrote:
Tom Bards;60682 wrote:
Alan Selwood;60679 wrote:
0.6% is dearer than Scottish Mortgage Trust (run by Baillie Gifford), and several of the other mainstream active trusts (Temple Bar, to name but one of several).


Scottish Mortgage Trust costs 0.95%

Temple Bar costs 1.37%


To compare like with like, the Vanguard PRIIP info for this Global Equity fund (here) claims there's another 0.1% in transaction fees to add on top of that 0.6% OCF, for a "total cost of investing" of 0.7%.


Not sure where those cost figures are coming from? On HL the OCF for TMPL is 0.49% and for SMT it is 0.44%. I hold MNKS which is 0.59%.


4 users thanked Sara G for this post.
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Tom Bards
Posted: 16 April 2018 11:06:55(UTC)
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Sara G;60701 wrote:
Tim D;60694 wrote:
Tom Bards;60682 wrote:
Alan Selwood;60679 wrote:
0.6% is dearer than Scottish Mortgage Trust (run by Baillie Gifford), and several of the other mainstream active trusts (Temple Bar, to name but one of several).


Scottish Mortgage Trust costs 0.95%

Temple Bar costs 1.37%


To compare like with like, the Vanguard PRIIP info for this Global Equity fund (here) claims there's another 0.1% in transaction fees to add on top of that 0.6% OCF, for a "total cost of investing" of 0.7%.


Not sure where those cost figures are coming from? On HL the OCF for TMPL is 0.49% and for SMT it is 0.44%. I hold MNKS which is 0.59%.




Check the KID Documents for full charges including transaction costs and gearing costs.

SMT overall charge is 0.95%, Temple Bar is 1.37%

MNKS with transaction costs and gearing costs included is about 0.95%

If you are using HL go to the cost tab for more accurate charges.


Edit: Looks like SMT is closer to 0.85% instead, still much more than 0.44%
7 users thanked Tom Bards for this post.
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chubby bunny
Posted: 16 April 2018 12:47:54(UTC)
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Tyrion Lannister;60683 wrote:
Some Vanguard ETFs are good value but I don’t think they’ve any credibility wrt managed funds.


https://www.vanguardinve...tive-funds-best-secrets

'In fact, when Mr Bogle founded Vanguard in 1975 its first fund was actively managed. Today, Vanguard is the third-largest active manager in the world, with over £800 billion in active funds.

And we're successful at it. Over the ten years ending June 2017, 95% of our active equity funds in the United States outperformed their peer groups.
'
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Tim D on 16/04/2018(UTC)
Apostate
Posted: 16 April 2018 13:07:08(UTC)
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Tom Bards;60703 wrote:
Sara G;60701 wrote:
Tim D;60694 wrote:
Tom Bards;60682 wrote:
Alan Selwood;60679 wrote:
0.6% is dearer than Scottish Mortgage Trust (run by Baillie Gifford), and several of the other mainstream active trusts (Temple Bar, to name but one of several).


Scottish Mortgage Trust costs 0.95%

Temple Bar costs 1.37%


To compare like with like, the Vanguard PRIIP info for this Global Equity fund (here) claims there's another 0.1% in transaction fees to add on top of that 0.6% OCF, for a "total cost of investing" of 0.7%.


Not sure where those cost figures are coming from? On HL the OCF for TMPL is 0.49% and for SMT it is 0.44%. I hold MNKS which is 0.59%.




Check the KID Documents for full charges including transaction costs and gearing costs.

SMT overall charge is 0.95%, Temple Bar is 1.37%

MNKS with transaction costs and gearing costs included is about 0.95%

If you are using HL go to the cost tab for more accurate charges.


Edit: Looks like SMT is closer to 0.85% instead, still much more than 0.44%


Interesting. According to HL the average annual charge on their platform for SMT is 1.48%. For Baillie Gifford Long Term Global Growth fund (almost the same holdings as SMT) it is 1.14%. For FGT it is 1.58% whereas Lindsell Train UK Equity is 1.15%.

Possible reasons for using ITs rather than OEIC funds:

1) The IT's performance outweighs the higher costs.
2) One can trade ITs "live"
3) They might be cheaper if you hold them without using a platform or use a platform which reduces costs for ITs/shares.

Otherwise it seems OEIC funds have the advantage. Or am I missing something?
1 user thanked Apostate for this post.
c brown on 16/04/2018(UTC)
Tom Bards
Posted: 16 April 2018 13:22:52(UTC)
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Apostate;60708 wrote:
Tom Bards;60703 wrote:
Sara G;60701 wrote:
Tim D;60694 wrote:
Tom Bards;60682 wrote:
Alan Selwood;60679 wrote:
0.6% is dearer than Scottish Mortgage Trust (run by Baillie Gifford), and several of the other mainstream active trusts (Temple Bar, to name but one of several).


Scottish Mortgage Trust costs 0.95%

Temple Bar costs 1.37%


To compare like with like, the Vanguard PRIIP info for this Global Equity fund (here) claims there's another 0.1% in transaction fees to add on top of that 0.6% OCF, for a "total cost of investing" of 0.7%.


Not sure where those cost figures are coming from? On HL the OCF for TMPL is 0.49% and for SMT it is 0.44%. I hold MNKS which is 0.59%.




Check the KID Documents for full charges including transaction costs and gearing costs.

SMT overall charge is 0.95%, Temple Bar is 1.37%

MNKS with transaction costs and gearing costs included is about 0.95%

If you are using HL go to the cost tab for more accurate charges.


Edit: Looks like SMT is closer to 0.85% instead, still much more than 0.44%


Interesting. According to HL the average annual charge on their platform for SMT is 1.48%. For Baillie Gifford Long Term Global Growth fund (almost the same holdings as SMT) it is 1.14%. For FGT it is 1.58% whereas Lindsell Train UK Equity is 1.15%.

Possible reasons for using ITs rather than OEIC funds:

1) The IT's performance outweighs the higher costs.
2) One can trade ITs "live"
3) They might be cheaper if you hold them without using a platform or use a platform which reduces costs for ITs/shares.

Otherwise it seems OEIC funds have the advantage. Or am I missing something?


Baillie Gifford Long Term Global Growth has outperformed SMT over the last year too.

Generally speaking after the release of the KID Document it seems to me that OEIC's are cheaper but, in the case with HL, when an investment trust holding reaches over £10,000 it may well equalise as the fee will only be £45. Anything under £10,000 it does seem to be cheaper to just hold the OEIC equivalent.
1 user thanked Tom Bards for this post.
antigricer on 18/04/2018(UTC)
Tim D
Posted: 16 April 2018 14:28:42(UTC)
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Apostate;60708 wrote:
Otherwise it seems OEIC funds have the advantage. Or am I missing something?


I think you've got to be quite careful comparing fund costs with IT costs via the PRIIP numbers because the ITs have to include "cost of gearing" in theirs. Of course, gearing is the extra magic which can help ITs outperform funds (given the right environment)... so is arguably something you expect and want to be paying for.

Recent FT article on this: https://www.ftadviser.co...s-double-trust-charges/ (includes the comment that "Baillie Gifford said gearing contributed 0.42 percentage points of the trust’s ongoing charges figure, which has risen to 0.84 per cent.")
c brown
Posted: 16 April 2018 16:18:39(UTC)
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To clarify. Are the charges on Trust Basics with HL incorrect? I have just checked the cost tab and it's totally different. I am now very confused. Also the HL charges. I thought IT'S in an Isa were capped at £45pa on the whole IT portfolio.

What exactly do the amc & the ongoing fees include? I thought the On going Charge was the final cost exc performance fees.
Tom Bards
Posted: 16 April 2018 16:38:23(UTC)
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c brown;60724 wrote:
To clarify. Are the charges on Trust Basics with HL incorrect? I have just checked the cost tab and it's totally different. I am now very confused. Also the HL charges. I thought IT'S in an Isa were capped at £45pa on the whole IT portfolio.

What exactly do the amc & the ongoing fees include? I thought the On going Charge was the final cost exc performance fees.



The ongoing charge does not include transaction costs or gearing costs.


SMT, for example, is 0.44% for the management charge only. When including transaction and gearing cost the fee rises to 0.85% and then plus the platform charge on top of that.

All IT's are going to cost substantially more than the ongoing charge states.

IT platform charges are capped at £45 over a holding of £10,000. The trust is still going to cost more than the ongoing charge suggests but you will save money the bigger your holding gets over £10,000. Still, most IT's I have looked at are essentially double the cost when factoring in transaction and gearing costs.
4 users thanked Tom Bards for this post.
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mcminvest
Posted: 16 April 2018 18:29:19(UTC)
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Tim D;60694 wrote:
Tom Bards;60682 wrote:
Alan Selwood;60679 wrote:
0.6% is dearer than Scottish Mortgage Trust (run by Baillie Gifford), and several of the other mainstream active trusts (Temple Bar, to name but one of several).


Scottish Mortgage Trust costs 0.95%

Temple Bar costs 1.37%


To compare like with like, the Vanguard PRIIP info for this Global Equity fund (here) claims there's another 0.1% in transaction fees to add on top of that 0.6% OCF, for a "total cost of investing" of 0.7%.


I have my kids isas with vanguard and almost all of their funds have a fee on top e.g. 100% Life Strategy has 0.15% on top as an annual fee = 0.37% on top of the 0.22% OCF. Its always worth looking for a dividend in any fund to cover the charges.
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