|Fundsmith Emerging Equities Trust
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Fundsmith Emerging Share Discussion Threads
Showing 176 to 199 of 200 messages
|The main fundsmith vehicle is my biggest investment and yesterday the Unit price hit 320p, exactly double my average purchase price. Given that it was supposed to be the safest part of my portfolio and has ended up being the best performing, to say I am delighted is an understatement.not sure what to make of FEET, but given his track record And the confidence he had that FEET will outperform fundsmith I feel I owe the concept a few more years yet.|
|and of course all the sports people moving to Monaco/Switzerland isn't about avoiding tax. They just like it there. I think Terry Smith has a good track record. He seems to be a "self-styled rebel" with the Accounting for Growth book. However, the broking business he was involved in after that had a lot of mixed quality companies as clients. Emblaze for example whose CEO went to jail. If he cared about the brokers' fund management clients why have companies like Emblaze?
In Fundsmith he has railed a lot against other fund companies but hasn't cut Fundsmith's fees despite the increase in assets. His opinions seem to "coincide" with his own interests in the same way that Donald Trumps opinions also coincide with his interests.
Having said all that the performance of the main Fundsmith fund is excellent and he has really shaken up the industry. We are lucky to have a fund like Fundsmith to invest in against the backdrop of a generally dire fund management industry. In my view, Mr Smith has made a lot of good moves such as by having no performance fees and adopting a high quality company and low turnover strategy. Not everyone liked Steve Jobs but he transformed the smartphone market.|
|montyhedge nails it:
Terry Smith, now 63, is apparently tired of London. A Companies House filing this week revealed that the pugnacious pro-Brexit East Ender — who ran stockbroker Collins Stewart, founded asset manager Fundsmith (and is an occasional FT columnist) — has been resident in Mauritius since January. One friend tells City Insider: “He’s not getting any younger. He wanted to take life a bit easier.” Fundsmith, originally and unaccountably registered with Companies House as “Funsmith” back in 2010, now has nearly £10bn of assets under management. It has had an office on sun-kissed Mauritius for the past three years. Smith said the location is a logical one for investing in Indian and other Asian assets for the group’s small emerging equities fund. More than that, he finds it “helpful” being “away from the noise of London”. The tax regime should be pretty helpful, too. The Indian Ocean island has a 15 per cent tax rate for companies and individuals alike. Last year, the bulk of the administrative expenses of the UK-based Fundsmith group (£29.4m out of £38.8m) were paid to the Mauritian entity, which employs five of the group’s 20 staff. That cut UK profit (distributable to partners, led by Smith, and then taxable) to £2.8m, down 78 per cent. What fun, Smith.|
|He's 63 first step to retirement perhaps.|
|It is in a good time zone for London and has lots of double tax treaties, though I'm not sure that is relevant for Fundsmith. Also, there are lots of accountants and fund administrators there and it is generally regarded as a gateway for investment to both India and Southern Africa. It may be that FEET invests through a number of subs and it is simpler for working out things live whether division can be paid gross to have shares owned through Mauritian subs. That would be my guess.|
|Is physical travel relevant these days?|
|Interesting thing in The Times yesterday about the shift to Mauritius. Smith says it is easier to trade Asian markets from there. Probably makes some sense for FEET. However, for the main Fundsmith fund I thought the idea was to have a low turnover so the ability to trade shouldn't be important.
An 12 hour flight to Mauritius from London. Not really sure I am convinced about the rationale for a move to the Island. Any thoughts?|
|My concern is that if the market decides EM consumer staples deserve a lower PE of say, going from 35 to 25, over a ten year period, this one would go nowhere.|
|Good Terry Smith article in FT Money. Puts more flesh on his argument that the EM rally so far has benefited large cap and cyclical stocks, rather than the good businesses FEET invests in.
I invested more in FEET on Friday. I agree (hope) that performance to date is Graham's "voting" stage, and am prepared to wait for "weighing" to take effect in the longer term. Though I'd welcome more detail from TS on how the FEET portfolio is doing on fundamentals. Bit of an act of faith atm.|
|Not the first time at a discount. I bought in Jan,June, and Nov 2016 at a discount (plus unfortunately other times at a premium)|
|Moving to a discount for the first time|
|Mozy123 - Not sure what I think about Fundsmith's move to Mauritius..possibly necessary to avoid tax on holding Indian shares. However, could be as a tax avoidance strategy for the owners of Fundsmith. Perfectly legal no doubt but not great for the UK government. Any thoughts? The praise for the Mauritius time zone for buying and selling seems odd given that Fundsmith is a long-term investor.|
|Moved $30mil to run the marketing function of fundsmith offshore - tax planning it seems|
|can't be bothered to register... what does it say?|
|Surely the issue is: how does a Trump-led swing to protectionism impact the investment thesis here. Terry Smith has been silent, while the NAV and share price reflect the market's view (and also reflect fx-rate swings)|
|More shares improves the profitability of the fund management company; to date the investment process is not generated significant outperformance! While it is not a hugely expensive management fee, it is not at the cheapest end of the market.
I will wait and see how the shares get on in the medium term.|
|Have seen they are advertising this in the newspapers a bit. My own thoughts are that it is not really a proven concept in the same way that the main Fundsmith fund is. FEET buys into companies that are often focused just one or a few countries. So there is much more country risk. I also don't know if the Fundsmith team can really cover all the emerging markets around the world for the sectors they are looking to buy into.
There was one Egyptian diagnostics company they were buying to that is listed in the UK whose share price only seems to go down. To date it has to be said that FEET hasn't really been a great investment. That is despite the fall in the value of sterling since launch.|
|Placing programme of maybe up to 4,164,480 shares (on top of current 21m):
Not pre-emptive, but presumably placed between latest NAV (now 1091p) and current price, as and when triggered ... needs an EGM.|
Yes, that comment on how to project total return struck me too.
Fraser-Jones of Woodford Investments uses the formula: "“In very simple terms, our total return expectation for a stock equals its dividend yield plus the anticipated rate of dividend growth."
The 52% ROCE was a bit tasty too. I only hope emerging markets accounts are presented in the same way as ours.
Still, @ 1180p if you discount the 6% premium and the 10-12% currency effect it is more or less @ issue price.
No matter, I am here for a minimum of 10 years and, like Mozy, have both funds.|
One point he made was that the P/e ratio of the trust was 35ish vs 24 for his equity oeic.
However like you say, the growth in earnings are increasing at alot fast pace and he expects Feet to outperform Fundsmith OEIC in the long run.
Sat here hapilly owning both!|
I do like Terry Smith's straightforward approach.
Only invest in good companies: Tick, but had to sell a few that turned out not to be
Don't overpay: maybe we pay high prices, but buying quality high-ROE growth companies is more important than price.
Do nothing: er 67% portfolio turnover, of which some (not quantified) is because we are still investing initial cash
The most interesting to me was his comment on p19 that shareholder Total Return should = the FCF yield + the eps growth rate. Which gave 20.5% TR last year for FEET vs 11.4% for Fundsmith Equity, and he would expect the two to diverge further.
I read this as his medium term expectation for FEET is >20% pa, (although other interpretations are available;-)
Comments welcome. Anything else strike anyone?|
|The video from the ASM 2016 has been released.