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Aminatidi
Posted: 07 May 2018 11:25:39(UTC)
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Does anyone have a view on them?

Impressive record with their income fund but it's the Global Income (Acc) I'm looking at.

Looks a similar philosophy to Train, Smith and Ashworth-Lord around you're buying a piece of the business.
King Lodos
Posted: 07 May 2018 14:52:37(UTC)
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The income fund's been good in the context of Equity Income .. But with everyone chasing income, I don't think it's been a good sector to be in – and if bond yields go higher, it's the lower growth dividend stocks that should suffer.

So I'd see the income requirement as a constraint .. But really, if you diversify too much with Quality stocks, you might as well just buy a Quality ETF, that has 1,000.

It's much harder to find three outperforming funds than it is to find one .. The problem you'd be setting up is that if one fund did particularly well, its impact would be watered down; but if Quality stocks as a whole had a bad patch, most of your funds would suffer .. So you'd be diworsifying .. The best solution for neurosis and uncertainty is a global index tracker, because that way you miss nothing

2 users thanked King Lodos for this post.
Aminatidi on 07/05/2018(UTC), B B on 14/05/2018(UTC)
Aminatidi
Posted: 07 May 2018 14:55:48(UTC)
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Fair, right now I'm happy, just "window shopping" for options should I ever need them.

Bit of a tangential question but on another thread I noticed you're in LT both Global and UK.

How come both or it literally as simple as to get the UK stuff that isn't in the Global fund whilst adding more of the stuff that's in both?
King Lodos
Posted: 07 May 2018 16:49:33(UTC)
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I use a trading style you could call relative strength momentum.

The basic idea is that medium-term performance is somewhat predictive of future performance.

So if the UK were to start becoming more attractive, large funds can take a while to reposition into UK assets (with a multi-£billion fund, it can take a long time to buy and sell positions – not to mention board meetings to get the all-clear to start buying more UK).

The repositioning itself increases demand and causes prices to rise .. Trend-followers follow those trends .. And eventually (maybe a 12-18 months later) you get news stories like "Is it time to buy UK assets?", which creates the last bit of the trend, when retail investors start buying.

So my aim is to see the whole market, and identify early trends .. That's quite easy .. The bit where you can make a real mess of things is in how you enter and exit positions .. At least half the trends you spot aren't trends .. At the moment for example I'm building a position in Baillie Gifford Positive Change .. That's the only new fund I've added in a while .. But I'd give it 50:50 I exit the fund on no profit .. With LT funds, the overlap makes it a much smoother, easier form of trend-following – and the fact I'd invest in these companies anyway means I don't have to think about getting out .. So it's very easy for me when a strong performer is also a safe bet .. I never recommend this to anyone, because it's sort of a case that if you haven't figured it out for yourself, you won't know what to do if things stop working .. I did running years of 50% annual returns doing this (in stocks) – it's not impossible this'll be another one, but it's only really Japan pushing higher this year
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