COVER STORY Giant
Fallen giants
“ One of the r performan inflows is be wedde
As the growth rally continues to defy gravity and takes another step upwards , so too do the assets of the funds plugged into this theme .
Fundsmith Equity now stands at £ 27.9bn , about 40 % more than where it was in July 2019 when Charles Stanley Direct dropped it from its recommended list , citing concerns over size . Over in the closed-ended sector ,
Scottish Mortgage ’ s assets are just under £ 20bn .
Regardless of whether you think the growth style favoured by these funds will continue to power ahead or give way to value , is it ever a good idea to buy into a strategy that has reached this sort of scale ? And if £ 20bn isn ’ t too big , what is ? To begin with , James Sullivan , head of partnerships at Tyndall ,
Hea warns against attaching too much weight to arbitrary numbers . He likens it to the difference between a cricketer who scores a century and one who only gets to 99 runs . “ We need such numbers at times to add some relative relativity to our lives , a barometer upon by which we measure success or failure ,” he says . “ However , it tells us little about the actual contribution towards the team ’ s success . “ Arbitrary numbers also get adopted by fund selectors to ascertain if a fund is too big or too small . We ’ ve all been there , at an investment
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