Fundsmith Emerging Equit... Share Discussion Threads

[jonwig] 18/1/2016 17:34

Latest 884p, so yes. Could get worse, might get worse. Could become an opportunity.

[mad foetus] 18/1/2016 16:10

I believe that for the first time this is now selling at a discount to NAV.

[mad foetus] 26/11/2015 14:46

I'm not sure it matters much to be honest. I suspect that either the "idea" behind FEET is a great long-term investment plan in which case at some point the NAV will start motoring and you will end up paying a premium and much more than the current price, or, for whatever reason, something that looks good on paper never really works in reality, in which case you'll never want to buy it. Obviously, 18 months on from IPO, the jury is out. I'm surprised it is still at a premium but presumably most who bought at IPO either sold when the premium went to 10% straight after launch or else are holding for the long term.

Most who hold FEET will also hold the Fundsmith OIEC, and performance there has certainly earned Terry Smith a lot of investor goodwill.

[jonwig] 26/11/2015 14:37

pig - nor would I. Though buying at IPO does involve some premium.

[flying pig] 26/11/2015 12:33

Not sure that I want to pay a significant premium to asset value..

[jonwig] 24/11/2015 14:17

I think I've said this a few times - the worst time to launch a closed-end fund is when the market is depressed, with an OEIC it doesn't really matter.

I don't think Terry Smith was too bothered either way.

[mad foetus] 24/11/2015 12:33

from the press it seems people are gradually turning more bullish on emerging markets. Trustnet is full of examples. I suspect we are in for a few years of outperformance from here and now may be a good entry point.

Remember, the shares in the FEET investible universe grew an average of 30%pa between 2004-2014. The launch appears to have been badly timed, but the potential is there and the stakes have been placed.

[mad foetus] 08/10/2015 08:48

jonwig, agree with all of that. I was reading something yesterday that said the global middle class was predicted to expand from 1.8bn to 4.5bn over the course of the current decade. mobile banking is now the norm in Africa. The news may be dominated by bad news, but with the exception of Brazil (which FEET has avoided anyway) it looks like life for the average person is improving throughout FEET's target markets. I would be very surprised if this isn't a very strongly performing investment over the long term.

[jonwig] 07/10/2015 16:18

Mad - I know nothing about SGI, though I think it was a favourite on some boards such as TMF for years.

At least, this man is non-exec (as are all the directors) and doesn't appear to hold any shares (looking at the latest accs).

I don't think he's presiding very much. I don't feel threatened.

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On a more general aspect, FT is quoting analysts who feel EM weakness is now overdone, and the oil price would seem to agree.

[mad foetus] 07/10/2015 15:50

Nice share price movement recently but I am concerned that our Chairman Martin Bralsford is presiding over the chaos at SGI. I would perhaps prefer our NEDs to have their finger in fewer pies.

[mad foetus] 09/9/2015 19:00

Try this If it doesn't work you can access the half yearly report thru the FEET Plc website

[hydrus] 09/9/2015 16:55

I've tried but can't see it, I'll try harder!

[mad foetus] 09/9/2015 16:54

Hydrus, I think you should be able to find it online. My hard copy through the post arrived today, by chance!

[hydrus] 09/9/2015 16:39

I.e. not I've

[hydrus] 09/9/2015 16:38

But isn't that because emerging markets have done badly? I've its not fund specific.Can't really see this being anything than very rewarding for long term investors.

[hydrus] 09/9/2015 16:32

Thanks mf, do you have a link to the top 30 holdings?

[trytotakeiteasy] 09/9/2015 16:31

only 2.4% of assets at June. So a 40% premium translates into around around a 1% increase in the NAV for FEET. So around 9p. All good but not exactly earth shattering given where we are.

[mad foetus] 09/9/2015 15:20

Diageo have made a bid for shares in Guinness Nigeria at 40% premium to current price. Guinness Nigeria was one of this fund's 30 biggest holdings, but as well as the immediate uplift, it surely illustrates that global players believe that when growth prospects are limited in the developed world, there is value and growth in emerging markets.

[trytotakeiteasy] 09/9/2015 13:15

jonwig - I was talking about the NAV not the share price.....NAV was 884p yesterday.... versus launch valuation of 1000p.....so doesn't look to great over a year...

[jonwig] 08/9/2015 18:37

trytotakeiteasy ...Based on 25/06/14 launch, MCSI EM index down 24%, FEET share price down 7%.

maybe "try to take it easy"!

[trytotakeiteasy] 08/9/2015 18:03

I have to say this is one investment trust that hasn't lived up to the hype....NAV under £9 over a year after listing..... so 10% loss over the period... it isn't clear what this is due to....

[hydrus] 07/9/2015 08:23

Dipped my toe in here, seems like an ok entry point for a long term view

[davebowler] 28/8/2015 16:08

Westhouse idea;


Investment Funds - Idea - Switch to Utilico Emerging Markets*


In our view, deflationary risks in emerging markets are still high and at least in the short term there remains significant downside risk to Chinese equities. We would ignore the day-to-day movements of the Shanghai Composite Index, which has consistently seen annualised volatility above 20%. Within emerging markets, we recommend investors switch part of their exposure from JPMorgan Global Emerging Markets Income Trust (JEMI), trading at parity, into Utilico Emerging Markets* (UEM), trading at a 10% discount. Over the last one, three and five years UEM has outperformed JEMI on a NAV TR basis.

[mad foetus] 28/8/2015 13:43

half yearly report makes interesting reading, emphasising the exposure to consumer spending and small ticket items, fast growing nature and cash flow generation of existing companies, that we are now pretty much fully invested, India and Africa are the main markets and since half year we have markedly outperformed benchmark (though still down 9%). Also re-iterates expectation that there won't be much turnover in portfolio so it really is sit and wait time.