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Fundsmith Emerg Share Discussion Threads
Showing 151 to 173 of 175 messages
|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.
|It appears to be turning along with emerging market fundies ASHM and ADN stabilising, it's those I will be comparing against in terms of returns. Wonder if this can outperform them, taking into account it pays no divis and the others do.|
|FEET is starting to do what it said on the tin.
Terry Smith has always said it will outperform Fundsmith over the long term. It certainly feels like a good place to be at the moment.|
|Up 11p today.|
|Up 29p today 11/7/16.|
|The pound falling again, should be positive for share price. Good diversification away from UK issues, I added more recently.|
|at a discount now and up from ipo for the first time in a while
feels like a new dawn for FEET|
|The slides from the latest AGM Presentation are on the website now.
|It is still trading at a premium.|
|yes but he is wrong so far.|
|Terry Smith on FEET:
|there was a good feature on the C4 news a couple of weeks ago about English people migrating "back" to Nigeria. Lagos is currently a real boom town, and quite a few black Londoners are setting up business there. The biggest problem for developing economies, as I understand it, is the inefficiency of the power supply, with power cuts all the time, but I suspect improved batteries, solar power and micro generation will solve that within a decade.
Of course there are huge problems, but I was left with the strong impression that things are getting better quickly in that part of the world.|
|Good summary mf, I'm certainly not going to be shaken out of my position but as you say it's always a little painful if you start of with a loss|
|In a good year FEET will manage a 50% gain IMO. It is always good if any investment starts off well, but I expect the speed this will at some point bounce back I'll surprise many. In the end, I believe the middle class in India, Nigeria, the Philippines and elsewhere will continue to grow, and to buy toothbrushes, ketchup, beer and soap in increasing quantities. That is the bet here, and if you can withstand the market noise I can't see what is wrong with that proposition.|
|Jonwig I didn't invest specifically to get EM exposure. I invested because a) I backed Smiths judgement that there were significant opportunities for growth in the type of company he likes to invest in within emerging markets and b) I believed he would continue to pick sensibly b) seems to be holding up wellNot sure about a) for now - maybe he has invested when valuations were near peak?However I'll give both 5 years before judging|
|That's why you invest here, or avoid.
If you want EM exposure without doing the stock picking or individual market choice, MSCI Em Index has fallen 24% since July 2015. FEET has fallen 15%. (FTSE100 by 11% but relevant?)|
|I hope he can|