Fundsmith Emerging Equit... Share Discussion Threads

[m_kerr] 11/5/2019 20:07

disappointing performance for me thus far - i invested in 2017 and the shares are two years on basically the same price.

per the fundsmith presentation, if FCF grew by about 15% last year, with roughly the same share price, the companies have become cheaper.

i have noticed the number of holdings has significantly reduced since i first invested, now about 41 holdings compared to about 50 before.

[jonwig] 28/3/2019 06:52

Seems to have escaped notice (FY results last week):

Shareholders will note that in 2018 the Company made a revenue profit and that revenue losses from previous years have now been reversed. As a result, the Board recommends to shareholders for their approval a small dividend so that the Company complies with the investment trust rules regarding distributable income. It is recognised that such relatively small dividends are not material to many shareholders but, having looked into the possibility of a dividend reinvestment plan, the Board has concluded that it is not practical given the relative quantum of share price and dividend.

Subject to shareholder approval at the forthcoming AGM, a final dividend of 2p per ordinary share will be paid on 29 May 2019 to shareholders on the register on 26 April 2019. The associated ex-dividend date is 25 April 2019.

At least not a disastrous year, as total return on net assets fell 3% last year, outperforming the 9.3% decline in the MSCI Emerging & Frontier Markets index.

"In the past three years the trust has underperformed rival emerging markets trusts with a 26% return to shareholders compared to the 60% average. Nevertheless, it retains investor support with the shares currently standing at a small premium over NAV in contrast to rivals that trade on an average 8% discount below asset value." [Citywire.]

[topvest] 17/3/2019 20:59

Thanks for posting. Definitely something to watch this week. Probably the best investor at the UK at this point in time, in my view. Nick Train probably a close second.

[jonwig] 28/2/2019 11:49

chucko - it's always interesting to read what he says, but his two danger signs aren't ones I'd have picked.

Trump may be going soft on China, and there's his recent public spat with Lighthizer - Trump is more concerned with losing US jobs from his base than doing the right thing.
And inflation? when the signs appear to be more of slowing, withdrawal of liquidity and falling interest rates.

[chucko1] 28/2/2019 11:33

Could have gone on the SSON board. Though probably better not - they’ve been a miserable bunch, unhappy that the fund price went below par and that TS had bought some rubbish. So some of them sold, or didn’t buy, and the fund went up 11%. At least FEET hasn’t done that of late.

[jonwig] 28/2/2019 06:35

Terry Smith, a rare prediction on the direction of stockmarkets:



Nothing on EMs, but nowhere else to put this.

[hectorscrackhouse] 03/12/2018 14:22

somebody seems to be buying 12467 shares repeatedly today. That is 150k a pop.

Dat you Tel?

[zho] 17/10/2018 09:06

Meanwhile ....

Terry Smith beats Woodford with record £822m Smithson launch

Terry Smith has raised a record £822.5 million for his new Smithson investment trust, beating the previous peak set by Neil Woodford’s Patient Capital trust three years ago.

[llef] 12/10/2018 11:07

mmm down 2.5%ish yesterday to 10.77.
so maybe wed move was an outlier

[llef] 12/10/2018 08:42

Essentialinvestor - yes that's true, but still surprising that NAV rose on wednesday.
guess the stocks are more defensive (in keeping with ethos of founder) and hence more resilient in times of panic?

[essentialinvestor] 11/10/2018 15:40

WO, it's 1 day behind surely.
Apologies for any ambiguity.

[wirralowl] 11/10/2018 15:20

Amazingly NAV ps actually went up yesterday slightly, now £11.

[wirralowl] 11/10/2018 10:39

Very true :-)

[essentialinvestor] 11/10/2018 10:32

There is unlikely to be much of a discount on today's update.

[wirralowl] 11/10/2018 10:13

Yeah, now a 3.7% discount to yesterday's NAV of 1094p. A small top up for me in my SIPP (pretty confident in this LT too!), but agree we could be heading sub £10.

[essentialinvestor] 11/10/2018 09:10

What a difference a day makes, eh.

The premium struck me as borderline bizarre.

Had a small amount, heading under £10?.

[essentialinvestor] 10/10/2018 15:12

Longer term this will do very nicely would expect,
however heavily focused India atm, so short term a lot may depend
on Indian equity markets.

[llef] 09/10/2018 12:05

isn't the performance here a bit poor?
NAV up 10% in 4.5 years?
no divis in the interim either?
just sticking the cash on depoist in dollars would have achieved a better return for shareholders!

[essentialinvestor] 09/10/2018 10:17

NAV is falling faster than a teenage boys jeans in a whoar house atm - excuse the baseness.

[essentialinvestor] 08/10/2018 10:20

NAV taking a battering.

[jonwig] 05/10/2018 13:43

FT:

Selling in emerging market stocks failed to let-up on Friday, a day after the asset class faced its worst day since February, with investor concern mounting over a pick-up in global developed market bond yields.

MSCI’s broad EM stocks gauge, which tracks equities in two dozen countries, dipped 0.65 per cent on Friday, adding to the 2.4 per cent sell-off the previous day.

EM equities dropped into a bear market in August, having fallen more than 20 per cent from the January peaks. There had been a modest rebound since then; however, MSCI’s index is now headed back towards 2018 lows.

A heavy sell-off in the market for developed market bonds and a rise in the greenback have been blamed for the latest jolt of turbulence. Yield on a wide-ranging Bank of America Merrill Lynch basket of DM sovereign paper has risen 7.6 basis points (0.076 percentage points) to 1.573 per cent this week — the largest rise in more than a year.

Higher DM yields are often bearish for EM companies since it increases the costs they pay for funding and makes it costlier to rollover existing debt.

Juan Prada, strategist at Barclays, said despite the “mild pressure” on some markets this week, sentiment towards EM has been improving. This has come amid a stabilisation in several key hotspots, including Turkey and South Africa.

Other upbeat factors have included the tri-lateral trade agreement between the US, Canada and Mexico — the latter being a major EM. The rise in oil prices have provided a mixed blessing, “as oil importers are fighting inflationary pressures and larger energy trade deficits, while oil exporters are reaping the windfall,” said Mr Prada.

However, Mr Prada is still cautious on the asset class, saying on Friday, “we recommend resisting the instinct to ‘buy the dip’”.

“EM sentiment has benefited from a string of constructive developments, but we do not believe that the elements that warrant a more cautious approach towards EM have dissipated,” he said.

[essentialinvestor] 05/10/2018 13:05

Sold out a few weeks back, if these got down near 10.50 again,
would be tempted to buy back some. Still trading on a nice premium to NAV.

[jonwig] 07/9/2018 06:46

I don't think so - though the timing of the new trust isn't so good!

EM woes have caught up with him!