Fundsmith Emerging Equit... Share Discussion Threads

[mad foetus] 07/12/2017 16:04

Sometimes I almost forget I have a shed load of these. Nice to see some movement at last.

[maiken] 26/11/2017 11:49

reported NAV breaches £12 for the first time !

[spacecake] 24/11/2017 14:32

wakey, wakey ... looks like something positive is in progress, 1200p here we come.

[trytotakeiteasy] 13/11/2017 12:21

mad foetus - I agree they should drop their fee. If I recall correctly they said they would start with this fee and then maybe evaluate it if the fund increased to a certain size. I think the IPO level was £200m and now it is about £280m.

However, in reality I think they will be loath to cut their fee. It is seen as a sign of weakness to do so. The only real threat is if this goes to a large discount then a hedge fund or agitator comes in and calls for change in the form of lower fees or buy backs.

In terms of the performance it is worth noting that part of it is due to issuing new shares at a premium. We have also had dividends reinvested over the period. So on balance the overall performance is lacklusture since the IPO. However, this could just be the cyclical nature of markets.

[mad foetus] 13/11/2017 09:22

I may drop them a line suggesting that, in light of the lacklustre performance, they should consider reducing their fees. Would urge others to do the same.

[spacecake] 09/11/2017 19:17

I see they have added LSE listed DP Eurasia, good move IMHO.

[zho] 01/11/2017 11:49

Fundsmith are launching a Sustainable Equity Fund today.

"For the last three years, Fundsmith has been running a sustainable equity segregated mandate for Comic Relief the portfolio of which will form the basis for FSEF. This portfolio has compounded in value by 23.9% p.a.1, almost the same as the Fundsmith Equity Fund over the same period."

[spacecake] 29/10/2017 09:45

An outbreak of euphoria hits US tech stocks again while much of the news from emerging markets is gloomy, Asian flu, Trump vs China, North Korean situation, rising commodity prices which don't favour terry choice of stocks.

I dont think this portfolio is exposed to high speed electronic supply chain investments, otherwise known as the internet.

[trytotakeiteasy] 29/9/2017 14:53

mad foetus - I am not sure Terry's explanation holds water. If you look at FEET's top holdings they have performed well in the last five years. FEET has performed poorly. I think the explanation may be poor stock selection for some of the smaller holdings in the Trust. I think the Trust has bought very expensive consumer staple stocks in developing markets. The ongoing fee is also relatively high for the Trust. Another factor is that there is quite high country risk given that many of the holdings are exposed to only one country.

In my view the explanation isn't only as Terry states but is in reality partly due to poor investment management. With the Trust not paying a dividend the returns over the long-term have been pretty dire.

[jonwig] 28/9/2017 14:41

I think there are two things here -

First, general tone that EMs are more likely to deliver returns than DMs in the near future,

Second, worries about the dominance of passive investors (trackers, but more so ETFs) and what will happen in a downturn. Here, his view is, I think sound but we might have longer to wait than we think before vindication.

Taking both into account, maybe FEET should be one foot in EMs? My other (a bigger foot) is UEM which is a decent divi payer and performer. Both eschew banks and similar financials!

[trytotakeiteasy] 28/9/2017 14:00

I think I may die of boredom following this Trust. Not sure why their performance has been so lacklusture.

[aa29] 08/9/2017 11:05

Just noticed Terry Smith purchased 30000 shares at 1156 the other day. Now holds 530000.

[peterbill] 28/8/2017 05:48

Shares in Fundsmith Emerging Equities (FEET) are trading at their biggest-ever discount, as their remarkable rating since the fund's launch three years ago wobbles.

Shares in the trust were yesterday trading hands at £11.47, 2.9% below net asset value (NAV). Not so unusual, you might think, and particularly not for an emerging markets trust, where double-digit discounts tend to be the norm.

But any discount on shares in the trust, run by star fund manager Terry Smith, is a rare occurrence. Since its launch in June 2014, when it soared to a double-digit premium, they have only previously traded below NAV for three short periods: on 2015's China-fuelled 'Black Monday', when China fears re-emerged at the beginning of 2016, and in the aftermath of the Brexit vote.

Yesterday's 2.9% discount contrasts with a 12-month average premium of 1.4%, which has reached a high of 5% over the past year. That gives the shares a Z-score of -3.7, placing them right at the top of the 'cheap' list of investment trusts compiled by Numis Securities.

[samuelcafc] 09/8/2017 13:08

Thanks for the link. Whats going on with the 1% discount at the moment? Share price should be at about 1190 based on recent premiums to NAV

[jonwig] 09/8/2017 06:46

FEET wants to make a bigger footprint in India:

[jonwig] 04/8/2017 06:51

Since IPO, we've given up relative performance and income. The only serious reason fore holding is the argument that the fund will be resilient in a market fall. Terry Smith has given good arguments that it will be and I'm willing to hold for the present on that basis.

But thank goodness I hold UEM as well.

[spacecake] 03/8/2017 23:04

Interim results !

[arf dysg] 20/7/2017 15:47

You could always buy some EMIM

[mad foetus] 30/6/2017 06:33

Just got around to watching this and agree with those observations. Rarely has the first part of the maxim of the stock market being a voting machine in the short term and a weighing machine in the long term been more clearly demonstrated. Just need the second part to now be proved.Considering topping up on any weakness, this looks like one of the few areas of the market with value.

[jonwig] 08/6/2017 10:25

hector - very interesting, thanks.

At around 25 min is an explanation of relative underperformance vs. index, which I find very convincing.

[hectorscrackhouse] 07/6/2017 20:59

ASM Video released



Most of it we have heard before but there is a good Q&A section from about 35:50 with some quite probing questions from savvy investors.

Still confident, despite under-performance



(Slides are available from the FEET website)

[papy02] 26/5/2017 09:31

He must have said something the market likes. I asked the company when video will be available - answer at least a few weeks time, as needs to be edited :-(

[edwards9] 25/5/2017 13:22

Did anyone attend yesterdays AGM, due to work commitments I was unable to attend and I wondered how Terry described the year, valutions and foward returns?