Join our community of smart investors

Explaining Lindsell Train's underperformance

Despite recent underperformance due to a lack of tech exposure Lindsell Train Global Equity is still a good diversifier
August 16, 2021
  • As names like Fundsmith Equity recover, Lindsell Train's global fund is left behind
  • We look at the key drivers of underperformance

Quality and growth funds have regained their poise in recent months, to the extent that some managers are now coming out swinging against their critics. In the case of Terry Smith, this involved issuing a semi-annual letter to shareholders defending the fund’s performance versus the broader market and value stocks.

As the chart shows, some of the most popular global funds with a quality or growth bias have at least begun to catch up with the market this year. As of 11 August, Fundsmith Equity (GB00B41YBW71) was slightly ahead of MSCI World index for 2021, with names such as Rathbone Global Opportunities (GB00BH0P2M97) not far behind. Even Scottish Mortgage Investment Trust (SMT), which has taken some big hits in 2021, is not too significantly behind, while popular upstart LF Blue Whale Growth (GB00BD6PG563) has enjoyed its own recovery.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in