Fundsmith Emerging Equit... Share Discussion Threads

[srichardson8] 28/11/2019 10:04

some of you might like this balanced account from Trustnet on what exactly (or inexactly) is an emerging markets fund

[essentialinvestor] 27/11/2019 18:28

They commented on buy backs previously and were against,
may stick with that.

If the Tory party secure a workable overall majority
can see further significant upside for GBP, perhaps also worth keeping in mind.

[horndean eagle] 27/11/2019 17:55

You are not far off 15% now.

[essentialinvestor] 27/11/2019 16:59

Not the impression he gave at the AGM, but take your point.
I don't see buybacks at this % discount, perhaps if NAV discount moved to 15% plus.

[horndean eagle] 27/11/2019 16:17

I think if it goes much lower they will start buybacks. Smith can't really have this trading on huge discount. I think he is probably borderline thinking of winding it up for reputational reasons. bit of an embarrassment.

[essentialinvestor] 27/11/2019 15:17

jonwig, good call on the widening discount.

[essentialinvestor] 27/11/2019 12:26

Thanks for that.

Had not realised there was a rigid definition.

[jonwig] 27/11/2019 12:22

Emerging economies sit between developeed ones and frontier ones. One of the main reasons why China isn't considered developed is that it lacks some features, such as a functioning set of property rights and personal insurance; that is, things which would be regarded as "middle-class". A list:

[essentialinvestor] 27/11/2019 11:57

By what definition?.

China is the second largest global economy and they hold Foshan Haitian.

[samuelcafc] 27/11/2019 11:03

Its not an emerging market

[essentialinvestor] 27/11/2019 10:47

FEET appear to have shunned Singapore, which surprises me.

They can't find one stock on the Singapore market that is attractive?.

The rigidity of their criteria perhaps has not helped.

And even allowing for their high quality mantra, there have been some
less than stellar stock selections.

[samuelcafc] 27/11/2019 08:32

just checked jpm and it holds basic shares that I could buy with any stockbroker.

[essentialinvestor] 26/11/2019 19:22

It's a major bet on India as has been previously mentioned.

[srichardson8] 26/11/2019 17:29

Every emerging market investment trust in the Trustnet universe is at a discount to book. Over 5 years Fundsmith Emerging NAV is up a paltry 2%, 9th of 13. Number 8 is up 26%, number 1 (JPM Emerging) is +76%. Over 3 years and 1 year it is respectively 9/13 and 10/13. Pretty lousy. It has 42% in India, 11% in Hong Kong and 6% in Egypt. The politics in those three has not been great, their economies are stressed. I am not surprised that investors have given it a higher risk rating. Not before time. It is just not very good.

[essentialinvestor] 26/11/2019 14:52

Speaking of Nick, Pearson is a stock I keep an eye on just in case their traction in
digital transition gathers momentum.

[jonwig] 26/11/2019 14:43

I guess investors no longer trust 'star' fund managers as untouchable. Nick Train has had an upset, and Smith too: maybe we now have a touch of reality? (Woodford possibly a timely warning about the mighty fallen?)

Discount at about 9%: if the market is toppy (I think so) discounts can widen further.

[essentialinvestor] 26/11/2019 13:23

Below 11.20 may be worth a look.

[essentialinvestor] 25/11/2019 13:23

FX less supportive now, and as expected NAV has come back quickly from near £13 a share.

[chucko1] 01/10/2019 18:25

We have see £13 NAV before, and at an FX less sympathetic than this. share price got to about £13.25 and that is its peak. Has hardly done a Smithson, has it! I am holding ad infinitum. I said that about WEIF once, but the facts changed. They have not on this one, or at least not materially.

[essentialinvestor] 01/10/2019 16:08

How much of that is down to FX ?, Must be a good 5% plus ?.

[donald pond] 01/10/2019 15:44

I could be wrong but, having held from launch, I can't recall the NAV at £13 before. Let's hope it's onwards and upwards from here

[purplepelmets] 01/10/2019 13:01

the tax cut helps too, from memory company tax cut from 30 to 22 pc in India

[llef] 01/10/2019 12:58

The end aug factsheet says that about 40% of teh assets are in India.

India has had the best monsoon season for 25 years, which is apparently very important for the economy

hxxps://www.straitstimes.com/asia/south-asia/highest-indian-monsoon-rains-in-25-years-to-boost-winter-crops

[essentialinvestor] 24/9/2019 12:12

NAV near £13.

[essentialinvestor] 14/9/2019 18:11

Some insight in to the abrupt slowdown impacting India.