Fundsmith Emerging Equit... Share Discussion Threads

[spacecake] 06/9/2018 22:07

Any reason for the drop, related to the new fund ?

[jonwig] 04/9/2018 09:43

The Smithson Investment Trust:



and the FT comment:

Fundsmith, the fund management business set up by veteran City stockpicker Terry Smith, says it will absorb all of the launch costs of its new £250m investment trust in a move that will reignite the debate over investment fees charged to retail investors.

The Smithson Investment Trust will target small and mid-cap global companies, and is intended to be the “son of” Fundsmith’s £17bn equity fund, which has grown rapidly since its launch nearly eight years ago to become one of Europe’s 20 largest actively management funds.

Fundsmith said it would “bear all of the costs” associated with the planned launch of Smithson next month, meaning that for every £10 invested in the issue, shareholders “will receive £10 of value on day one of trading”.

“We’ve never seen another example of this in the market,” said Mr Smith. “Presumably that means some people in the investment trust world might be upset, to which I say ‘oh dear’.”

As the investment manager, Fundsmith will charge an annual management fee of 0.9 per cent based on Smithson’s market capitalisation, not the commonly used measure of net asset value.

“We think funding the upfront costs is the reasonable thing to do, as we are going to get fees over the years for managing this. Assuming the fund is successful, we will recoup our investment,” said Mr Smith, who is personally investing £25m into the new vehicle.

Active managers have come under fire for charging retail investors high investment fees when, in many cases, the performance of their funds has been beaten by low-cost passive funds which merely track an index. Since its launch in 2010, Fundsmith’s equity fund has beaten its benchmark, returning more than 20.3 per cent on an annualised basis compared with 14.4 per cent for the MSCI world index.

Mr Smith said that at launch, Smithson would target a portfolio of 25 to 40 global companies with a market capitalisation between £500m to £15bn which could “compound in value over many years, if not decades”. He highlighted the consumer goods sector, healthcare and IT as sectors where investments would be particularly targeted.

“When Fundsmith made its first investment in Domino’s Pizza, it was a £1.8bn company, but today it’s worth £12.5bn,” Mr Smith said. “We could still buy it — but how about the next Domino’s?”

He mentioned Wingstop, the $2bn Nasdaq-listed fast-food chain, as a possible contender but said the sheer size of Fundsmith’s £17bn equity fund meant that “we would have to buy a third of the company, a road to ruin in terms of liquidity”. Such issues prompted the launch of the new vehicle.

Other smaller stocks that Mr Smith said could meet the new trust’s investment criteria included Fevertree, the upmarket UK tonic brand; Ambu, the Danish healthcare company that is the world’s biggest manufacturer of disposable endoscopes; and Amadeus, the Spanish airline and travel reservations business.

Smithson will be led by two fund managers Fundsmith hired from Goldman Sachs last year — Simon Barnard, the trust’s investment manager, and Will Morgan, its assistant investment manager.

Mr Smith will provide “advice and support” to the management team in his capacity as chief investment officer of Fundsmith, the company said.

[edwards9] 02/9/2018 13:11

Thanks Goyathlay, something new appears to be brewing, see the story from FS agmhTTp://m.citywire.co.uk/money/terry-smith-hints-at-plan-to-target-smaller-companies/a1096764

[goyathlay] 31/8/2018 11:11

Terry Smith article today

hxxps://www.fundsmith.co.uk/news/article/2018/08/31/financial-times---busting-the-myths-of-investment

[jonwig] 16/8/2018 07:42

@ Peterbill - at December 2017, it had 0.2% of its portfolio in DP Eurasia NV, incorporated in the Netherlands, principal place of business Turkey. So not much, I'd say.

But India is its biggest country holding and the rupee has been weak recently.

[peterbill] 16/8/2018 04:14

Anyone know what exposure to Turkey FEET has?

[papy02] 10/7/2018 09:30

Yes, many thanks Mozy. It’s also on FEET.co.uk
Bit strange there is no q&a.

[jbarker5555] 10/7/2018 08:46

Thanks for posting Mozy, been waiting for that. :)

[flying pig] 05/7/2018 17:16

$ interest rate increases will impact EM economies fairly badly as the effect works thro in external borrowings and currency impact.
Maybe time to exit and return later?

[spacecake] 28/6/2018 07:03

Feet has virtually no exposure to china therefore this fund could outperform during the global trade battle with the USA, Shanghai Shenzhen CSI 300 Index of Equities now in bear market and down over 20% since start of year.

Feet down about 6%

[papy02] 13/6/2018 09:49

Thanks. I’d guess (hope) your version is correct and the phrase “from the AGM” got missed out of the reply to me (the person I asked went off to ask a colleague).

[maiken] 13/6/2018 09:33

funnily enough I rang them yesterday.I understood it to be 6-8 weeks from the AGM itself which was 23rd May.Either way, whoever knew editing was such a long,drawn out process !

[papy02] 13/6/2018 08:40

Spoke to FEET this am. AGM presentation is expected to be loaded on the site in 6-8 wks from now. (No idea why ot takes that long!)

[jhan66] 13/6/2018 06:54

Feet is a big holding for me and It’s just coming up to 4 years since launch with annualised growth dipping under 6%
It still looks like the safe harbour I wanted when I first bought so I’ll remain invested but I’d be happier if it would push on now

[trytotakeiteasy] 09/6/2018 17:59

Surprised they didn't put the 2018 AGM online. Suggests that shareholder questions were tough? Surprised they bought into that Indian bike company.

[jhan66] 26/5/2018 10:29

I can’t find this year’s AGM TV presentation but the document that no is here


5.7% growth not too good but had a lot of headwinds in India, their main market. I’m still a fan and will remain invested for the long term

[mozy123] 24/3/2018 15:36

goyathlay

1) bought it!
2) own dge so not buying it

haha

[goyathlay] 24/3/2018 13:24

Slightly off-topic but the presentation for the main fund's AGM is on the website now.

Different format from previous years with Jeff Randall as compere. Not as repetitive as usual either with the Q&A session covering different ground.
Won;t spoil it but two questions sttod out:

1) Which one stock could you envisage holding for 50 years?
2) Which stock was the one you most regret NOT buying?

Enjoy!

hxxps://www.fundsmith.co.uk/tv

[spacecake] 22/12/2017 13:49

Nice finish for the holidays

[spacecake] 19/12/2017 16:23

Emerging Markets ETFs and the Jaws of Death

Have the "Jaws of Death" started to close any I wonder ?

[mad foetus] 08/12/2017 10:02

The last months factsheet is interesting: NAV up 4.5% while benchmark was down 1.7%. I think there is a real battle in emerging markets between the influence of trackers and underlying fundamentals. It is good to see a divergence from benchmarks and perhaps augers well.

[jonwig] 08/12/2017 09:21

Fund factsheet for November:



I think anyone criticising the performance here should have known that its investment universe and parameters are no those of a normal EM fund. For example, it uses no benchmark index for comparative performance. The test will be how it does in the (inevitable?) EM market downturn. (it's done OK lately, of course.)