Fundsmith Emerging Equit... Share Discussion Threads

[mad foetus] 25/8/2015 13:07

I suspect the cash that was left has all been deployed in the dip. Let's see how performance goes from now on.

[spacecake] 25/8/2015 13:00

Back to a premium already!

[mad foetus] 24/8/2015 12:23

hmm, wish I had sold at 1100 and was buying in now! Worth remembering that over the decade prior to launch shares in FEET's "investible universe" had risen an average of 30% pa. A bit of catch-up would be nice!
NAV currently 908p, so around an 8% discount at the moment, though obvs. there will be losses in tomorrow's NAV.

[my retirement fund] 24/8/2015 10:23

I just dipped a toe in

[blondeamon] 24/8/2015 10:21

Looks a much better buy at these levels today than any time before.

Anything near 800p looks fair and premium is almost gone.

[my retirement fund] 18/8/2015 16:02

Have just dropped by to take a look at the NAV and shareprice since my last post.

Well its interesting what difference a week makes. The currency news confirms Mad Foetus recent good entry point post now very possibly very far off,I suspect edwardt is closer to reality.

This is still quite someway off offering a decent discount to NAV and is looking extremely overvalued to its peers.

I just hope anyone who has chosen to take the invest and hold approach here has a very long time frame indeed.

[masurenguy] 11/8/2015 07:27

I monitor FEET as a comparative stock to CLIG where I have a long established holding. FEET has performed poorly so far with the shares down by circa 11% over the past year. CLIG shares are up by 6% over the same period and it also has a yield of circa 7%.

[jonwig] 11/8/2015 06:39

The best time to launch a (closed-end) fund is generally the worst time to buy a fund.

A manager launches when investor appetite is high, since he has a minimum take-up to target, and needs to avoid a flop.

Some managers (Smith, Woodford) can go against that trend to some extent, but the premium here is deflating. Even now might not be a good time to buy EMs, as US interest rate hikes and a rising dollar are real threats.

I still hold my original stake, but won't add now until a measurable discount appears.

EDIT: By coincidence, just after posting that:

[trytotakeiteasy] 10/8/2015 22:40

interesting that they were at 11.4% cash at the end of July. So not much further to go to be fully invested. Then they will be judged against their peer group. Tough part remains the currencies. Brazil Real has fallen about a third against sterling so far in 2015. Terry Smith had some kind of thesis as to why now was a great time to launch a fund like this. Probably this thesis hasn't been correct at least to date. Or at least launching a year later might of worked out better.

[alun rm] 10/8/2015 17:30

I've been watching FEET for a while and finally took the plunge this morning. I like the philosophy and feel this is a good way to gain exposures was to emerging markets in a relatively defensive way. Fundsmith has been kind to me and I'm buying this in my SIPP as a 5 year plus hold. Time will tell.

[trytotakeiteasy] 10/8/2015 13:28

I am guessing that they are being killed on the emerging market currency side. So they invested in some Brazilian tobacco distributor which should be taken over by BAT. however, the Brazil real has significantly fallen back against sterling. Probably a similar case elsewhere.

FEET appears to have been a bit too early. Should still do ok long-term but emerging markets could be in a tough situation for a while.

[edwardt] 10/8/2015 12:50

problem is this is on a premium rating to other trusts in the sector. it deserves to be because it should offer some defensive qualities but suspect we will see a good entry point in the next 6 months, too soon now imo.

[mad foetus] 06/8/2015 13:52

No, I suspect this is a good entry point. monies pretty much invested, emerging markets have had a dodgy 12 months. the test now is simply whether the fundsmith approach works in these markets. if it does, it is clearly a buy and hold for a very long time. if not, we'll see a discount.

[my retirement fund] 06/8/2015 13:45

Now lets see a decent discount !

[mad foetus] 06/8/2015 13:37

NAV at 962p, premium almost disappeared

[edwardt] 03/8/2015 16:12

if nav and share price converge at £9, I am in like fin.

[edwardt] 28/7/2015 15:41

again falling nav and premium expansion - this needs to come back another 5%.

[edwardt] 23/7/2015 13:25

nav still dropping and share price going up!

[mick toorician] 25/6/2015 19:43

The AGM Presentation is on the website:




Nothing particularly significant except perhaps the Free Cash Flow Yield in the Presentation is reported as 3.5% cf that in the Annual Report of 4.1%

As mentioned above, one to accumulate over time perhaps.

[edwardt] 24/6/2015 10:19

the way I look at it, is it has to be removed before I invest. we are still not there but given the poor nav returns to date, I would have thought it is coming..

[fabius1] 18/6/2015 19:45

Perhaps one way to look at the premium is it reflects the cash position which could well translate into future value should TS decide to invest at value levels or better. By contrast, for instance, a geared fund in a falling market might be considered in a less favourable light.

[deltrotter] 18/6/2015 14:41

Buying chunks on a monthly basis, MRF

[my retirement fund] 18/6/2015 12:54

drip-feeding like deltrotter

??

[jl9] 18/6/2015 12:32

Yeah, the relentless decline in NAV leaves the premium looking odd.

More one to watch than buy unless you are drip-feeding like deltrotter.

[my retirement fund] 18/6/2015 12:08

Still an eye watering premium to NAV, this will put a lot of peeps of, myself included