|Fundsmith Emerging Equities Trust
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Fundsmith Emerging Share Discussion Threads
Showing 176 to 198 of 200 messages
|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.
|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|