Templeton Global Growth Fund Ltd.

ASX:TGG
Deleted on 2021-11-04 00:30:04

Templeton Global Growth Fund Ltd.

ASX:TGG
Deleted on 2021-11-04 00:30:04
$1.630 (+0.3%)
Last close price
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0
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Reports (1) My Report Forum Investors
Forum Topics TGG TGG TGG and WAM Global Merger
edgescape
Added 3 years ago

With the merger taking place, I'm wondering where else would be a good replacement for TGG in a porftolio apart from sticking with WAM Global.

I think people will be tempted to take the cash at the NTA price, but equally WAM is offering to pay up the dividend for new holders plus options.

When I get time I'll work out the pros and cons of the cash offer vs taking up the holding but I reckon it will further dilute the WAM global registry after the merge is complete.

Wondering if anyone had thoughts on the above.

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Dangles
Added 3 years ago

Hi Edgescape

I've been a WGB holder in my personal portfolio since April 2019. Have enjoyed a nice re-rate towards NTA, but looking to sell out now due to the high fee structure and the crappy options issue which will likely cap the share price no matter how the portfolio performs.

I'm looking for another global LIC / fund, but not finding a heap that appeal right now. Magellan Global Fund (MGF) is at roughly a 10% discount, but has a similar fee structure to WGB and performance is still currently a tad underwhelming. May end up just parking the funds in the Vanguard International Index ETF until something better comes along.

Cheers,

Dangles

5
Bear77
Added 3 years ago

Hey @edgescape and @Dangles - have a look at WCM Global Growth Fund (ASX:WQG).  Still available at a discount to NTA and kicking goals with their portfolio.  They are a little different to other globally focussed LICs that are listed on the ASX, in that (a) their FUM is managed by WCM Investment Management which is based in Laguna Beach, California, a long way from the financial hub of New York City, and (b) they are strongly focussed on Culture and Moats.  Particularly the corporate cultures of the businesses they invest in.  They require their investee companies to have corporate cultures that help facilitate growing moats.  Not only do they want a positive corporate culture in the business, they want that culture to enable and support the company's competitive advantages, and they also want the competitive advantages (moats) to be growing, not shrinking or staying the same.  In summary, their investee companies need to have growing competitive advantages supported by a positive company culture.  The Moats thing is not unique, many fund managers look for moats, but the corporate culture aspect is one that I think is fairly unique to WCM, at least the very strong emphasis they place on it is certainly uncommon, in my experience.

WQG is managed here in Australia by Contango Asset Management (CGA) but the PM is WCM in California.  At 31-May-2021 their top 10 positions were:

  1. Stryker Corp. 4.94%
  2. Shopify 4.28%
  3. West Pharmaceutical Services 4.16%
  4. Sherwin Williams 4.07%
  5. LVMH (Moet Hennessy Louis Vuitton) 3.99%
  6. First Republic Bank 3.51%
  7. Taiwan Semiconductor 3.33%
  8. Thermo Fisher Scientific 3.31%
  9. MercadoLibre 3.26%
  10. Visa Inc. 3.25%

Total: 38.10% of their portfolio (top 10 positions).

Their sector breakdown (entire portfolio) was:

  • Information Technology 23.97%
  • Health Care 18.86%
  • Consumer Discretionary 17.75%
  • Industrials 11.23%
  • Financials 10.51%
  • Materials 6.22%
  • Consumer Staples 6.17%
  • Communication Services 3.17%
  • Cash 2.12%
  • Total 100.00%

I hold WQG shares, and have done since they were trading at $1.10 in September 2019, and they're now trading at $1.635, so they've provided good gains for me so far.  I also started adding them to my Strawman.com virtual portfolio in March 2020 at $1.13, so I'm up +50% on them here also.  Good LIC.  Very well managed portfolio.  Worth a look.  More here:  https://strawman.com/reports/WQG/all

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