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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Smithson Investment Trust Plc | SSON | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 14.00 | 1.01% | 1,394.00 | 16:35:17 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 1,370.00 | 1,370.00 | 1,390.00 | 1,394.00 | 1,380.00 |
| Industry Sector |
|---|
| EQUITY INVESTMENT INSTRUMENTS |
| Top Posts |
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Posted at 06/10/2023 14:14 by danieldruff2 I see it was the second most sold investment trust last month |
Posted at 20/8/2023 10:54 by papy02 CdV,as a recent late to the party Fundsmith investor, I worry that alternative explanations could be: - Terry Smith and his sidekick’s focus on Fundsmith. I.e. they are just good stock pickers and performance is dependent on them staying around. - They have ridden a wave of popularity for quality growth large caps, and will falter once that subsides. I have no idea which it is, and hope it is as you suggest, that the Fundsmith method works for large caps, even though apparently not for mid-caps or emerging markets. |
Posted at 23/9/2022 20:05 by m_kerr if the typical portfolio position will be 3%, that puts the minimum size company they can invest in at about £650m if they own max 10%. they're very eager to raise as much equity as possible to boost fundsmith's fees, but it will be a hinderance to their strategy over the long run. these large scale equity raises haven't benefitted existing investors (at the raises are only ever at tiny, immaterial premiums to NAV).interest rates could hit 4.6% next year in the US according to the fed, that's in a country that currently has lower inflation than the UK. |
Posted at 12/8/2022 10:34 by lomax99 Inflation has wiped 30pc from my portfolio the worst may be over'Fund manager Simon Barnard explains why his £2.5bn investment trust will bounce backAfter it raised record-breaking sums from investors when it floated in 2018, the Smithson Investment Trust has had a torrid 2022 so far.The £2.5bn fund, which invests in global small and medium-sized companies, has struggled over the past 12 months, with its assets falling in value by 19pc. This compares with a 20pc drop from rivals and a 7pc loss by its sister fund Fundsmith Equity, which is managed by renowned investor Terry Smith and focuses on much larger companies.The trust's manager, Simon Barnard, tells Telegraph Money why he remains confident in his strategy following this tough period and why inflation may already have peaked.How do you invest?The strategy is identical to that of Fundsmith Equity in so far as we invest in a small portfolio of high-quality companies and we try not to overpay for them. We then do as little as possible, which means our turnover and costs are minimised. It also means the companies we own are given a chance to compound in value over time. In practice this means we aim to hold them for five to 10 years, but ideally we would hold them forever if nothing caused us to sell.In our opinion a high-quality company has to have high returns on capital, which means a good return on the money the business has invested. To get that you need high profit margins and strong cash flow. The difference between us and Fundsmith Equity is that we apply this to global small and medium-sized companies, whereas they tend to focus more on large caps.Do you avoid any companies?We tend to avoid quite a few sectors. This is determined by the areas that we see generate long-term shareholder value. Sectors we tend to like are technology, healthcare and those that are consumer-facing, which means we avoid pretty much everything else. This includes energy, commodities, heavy industrial companies, cyclical industries like airlines and cars, regulated industries such as utilities and asset-heavy industries like real estate.Why has the fund performed badly in 2022?Performance has been tough so far this year. As inflation has increased, the market has expected interest rates to rise to control it. Central banks are doing that, but it is the expectation of higher interest rates that has tended to reduce the valuations of our companies.They are high quality and quite fast growing, which means they have a lot more profit to come in the future than other parts of the market, so tend to have higher valuations. As interest rate expectations increase, the value of those future profits in today's money is ultimately reduced, which means the valuation falls.Overall, we remain confident in the long-term outlook of the companies we own, share prices aside. The strategy of investing in high-quality, growing companies has performed well through earlier cycles.What will happen to interest rates and inflation?Our strategy is to invest in good companies, regardless of future macroeconomics. As we can't predict that, we don't spend too much time thinking about it. What I would say is that, given the increase in interest rate expectations that are weighing on the share prices of our companies, it makes sense that this pressure will be relieved once interest rate expectations from the market stabilise.That requires us to see the peak in inflation because as soon as that happens we can get a better sense of the overall size and shape of the interest rate cycle that is needed to contain inflation. Unfortunately, the actual peak of inflation can only be determined after the fact because we need to see a few months of declining inflation, but there is a possibility we could well be living through peak inflation now.Are your holdings protected against recession?The vast majority of our companies are not particularly cyclical. They have high margins and a lot of cash on the balance sheet with very little debt, so fundamentally they should be fine.What has been your best investment?Since we bought Fortinet, the cybersecurity company, in September 2020 it has gone up by 155pc. As you can imagine, issues in cybersecurity are not going away, recession or not.And your worst?Unfortunately, because the travel industry was devastated during the pandemic, the worst performer has been Sabre, a software company that serves the sector.In focus: MonclerThis Italian fashion brand is a well run company. It has high margins and returns on capital and is increasing its market share. It has also acquired Stone Island, another Italian luxury brand, which is in a similar position to where the Moncler brand was in the early 2000s. The firm is confident that it will be able to grow Stone Island just like Moncler.The travel industry is recovering only now. We have seen signs of life in Sabre, but it has been a long slog through the pandemic. |
Posted at 09/5/2022 08:51 by hectorscrackhouse This announcement from the website dated today""Fundsmith LLP (‘Fundsmith The new Partners are: Paul Mainwaring Chief Financial Officer Simon Barnard Portfolio Manager - Smithson Investment Trust Will Morgan Assistant Portfolio Manager - Smithson Investment Trust Jonathan Imlah Research Thomas Boles Research Hugo Cardale Sales - Asia, Scandinavia & Family Offices Peter Jackson Sales - UK, Ireland & Middle East Amar Patel Head of IT and Chief Information Security Officer Terry Smith, Founder and Chief Executive of Fundsmith, said: “I am delighted to welcome many long-standing and integral members of the team, from across the breadth of our operations, as new Partners. By further aligning their interests with the success of the firm we will ensure the business continues to develop and strengthen as we seek to deliver a world class service to investors.” Fundsmith Equity Fund The Fundsmith Equity Fund offers investors a high quality, concentrated portfolio of 20-30 resilient global growth companies which are held for the long term. Since inception to the end of April 2022, the fund’s AUM has grown to £25.5bn and it has delivered a total return of 496.4% or 16.8% annualised, net of fees."" |
Posted at 18/3/2022 12:15 by sphere25 No problem BELtd.A decent article here: Fund managers are divided on whether the US Federal Reserve can implement its biggest tightening cycle in decades without tipping the economy into recession. The central bank lifted interest rates by 25bps last night, its first raise since 2018, and set the course for six more hikes this year as it looks to rein in inflation running at a 40-year high. Chair Jerome Powell (pictured) said the Federal Open Market Committee was ‘acutely aware of the need to return the economy to price stability’ and pointed to ‘extreme’ Others are not so sure the Fed can carry off the fine balancing act of tackling inflation, which has been exacerbated by the war in Ukraine, without stymying growth. ‘It won’t be easy. Rarely has the Fed safely landed the US economy from such inflation heights without triggering an economic crash,’ said Principal Global Investors chief strategist Seema Shah. ‘Furthermore, the conflict of course has the potential to disrupt the Fed’s path. But for now, the Fed’s priority has to be price stability.’ Last night’s increase, taking the target range to 0.25-0.5%, was widely flagged, but the Fed could yet throw out some surprises down the line. The committee members voted 8-1 in favour of a quarter-point raise, with St Louis Fed president James Bullard the outlier calling for 50bps. But the dot plot, which signals the future direction of rates, revealed that four committee members estimate more than seven increases will be needed this year, suggesting at least one 50bps hike could be on the cards. ‘The risks of a central bank-induced recession and policy error are high and rising,’ said M&G fund manager Ben Lord. ‘But given how high inflation is, how elevated expectations are, and how behind the curve central banks are, we all need to prepare ourselves for a series of hikes in the coming months and perhaps years, depending on what happens to aggregate demand. And we also need to prepare for the risks that such monetary policy action could have on consumption, the economy and portfolios.’ Economic growth expectations are already being scaled back as higher oil prices, the war in Ukraine and renewed lockdowns in China weigh on global consumption. The Fed downgraded its US GDP outlook for 2022 from 4% to 2.8% in its Summary of Economic Projections released yesterday. Goldman Sachs last week cut its prediction for US growth from 2% to 1.75% as the bank put the odds of a recession this year at 20-35%, in line with what the market is pricing in. Despite the doom and gloom, the odds point to a slowdown rather than recession currently. Six further 25bps hikes by the Fed would only take rates back to pre-pandemic levels, putting them into or just above ‘neutral’ ‘For now, the outlook for the US economy is one of resilience rather than recession, and [it] is capable of absorbing the higher interest rates,’ said Kerry Craig, global market strategist at JP Morgan Asset Management. The caveat to this is that the Fed needs to be patient in bringing down inflation, said Blerina Uruci, US economist at T Rowe Price. Her base case is that the economy has an ‘orderly exit from the current accommodative policy stance, avoiding a recession’. To achieve that, she expects the Fed to tolerate personal consumption expenditure inflation, its preferred measure, remaining above its 2% target until the end of 2023. The two risks to a soft landing Uruci foresees are the Fed overcompensating for its inaction by raising rates too quickly or the strength of the labour market, consumer demand and supply shocks pushing inflation higher. ‘Recent consumer survey data indicate that while long-run inflation expectations remain well anchored, short-term expectations have moved significantly higher,’ she said. ‘Without strong Fed policy tightening, longer-term inflation expectations could also increase, resulting in higher inflation becoming entrenched in the economy.’ |
Posted at 15/3/2022 19:35 by sphere25 Quality will shine through. It is just one of those terrible markets that are part and parcel of the cycles we all go through. It makes people feel horrible, but better times will follow.Even if there are sanctions on Russian energy, leading to astronomical moves in energy prices, that then lead to a recession, we will still come out of this. It will take some time, but I think folk will look back and be glad they invested in quality. Recession risk from Fed Survey: 33% saying a recession to follow in the US in the next 12 months 50% saying a recession to follow in Europe in the next 12 months It is just the timing that is a nightmare at the moment. That survey shows how tricky it is. If Putin wasn't in the equation, it becomes easier - not easy, but easier. You can see the markets trying to rally and moving inverse to oil. If we could confidently say Putin was out of the equation, oil just bobs around in a range anywhere around these levels or even abit higher, I really think the market would bounce back very sharp and then find a range to sit in back above key support levels where they sat before Putin. I think the consumer would then not take this big confidence hit in regularly seeing..."Energy bills going to £3000-£4000", "Bread up 20%", "Petrol prices at records as further warnings on rises", "x,y,z company increasing prices", "Holiday surcharges to hit families further" and so on and so on and so on... Unfortunately, it isn't that simple and it is hard to call what headlines we wake up to in the morning so even this attempt to move higher driven by the US is fraught with peril. If I was a longer term investor, looking ten years plus out, I'd definitely be looking at the quality shares hammered down to low teen or single digit multiples and thinking about averaging in. I could say "The balance sheet can stand a downturn and even if the earnings contract by x%, alot is priced in or there is x% downside to earnings, I am ok for all that to play out". But that isn't me. Everyone has their approach, but this is the challenge that comes with markets. It can be abit fight or flight at times, but risk management is everything. No need to be a hero. Manage risk and we all come out of this. All imo DYOR |
Posted at 26/7/2021 15:14 by bezer Many thanks Wildshot:Yes, it would be great if Smithson could make FTSE 100 status. Yes, I am aware of the 85% up against the market cap. The following is my view and please correct me if I am wrong: I hold both the main Fundsmith Fund (which I adore) and Smithson. I understand that fees are controversial to some investors....... Personally, I am totally relaxed about the fees as I am more than happy to pay for the excellent performance that I have enjoyed since I originally invested in the main fund in August 2018 and Smithson on day one. Now, I believe that I am correct in saying that Smithson can issue equity but not the main Fundsmith Equity Fund. Smithson is regularly issuing new shares at a premium to NAV as the share price seems to spend approximately 95% of the time higher than NAV. The profits from this conveyor belt of equity issue all go into the NAV to the benefit of shareholders, as far as I am aware...... Thus, as the profits from this operation are considerable, are we not effectively having our fees paid for us and more by this process? This is not (cannot be?) the case with the main fund...... If I am talking nonsense, please put me right, but that is the way I see it. Every time they issue more equity at a premium to NAV these extra profits go towards our fees... Comments please! Thanks. |
Posted at 17/3/2021 22:00 by mattboxy Sorry to hear that but she was indeed a wise investor - good luck! |
Posted at 12/10/2019 11:16 by lomax99 Added a few around £12.07, profiled in Shares this week:Smithson lives up to the hype as the Fundsmith trust turns oneWe explore how it has achieved nearly 19% return in 12 months A year ago Smithson (SSON) became the largest ever investment trust launch, raising £822.5m to invest in quality small to mid-cap companies. Investors lapped up the shares in the hope they would deliver similar success to its sister fund, Fundsmith Equity (B41YBW7).Their faith has been rewarded with Smithson having achieved 18.8% return since launch on 19 October 2018 versus 19.7% from the flagship Fundsmith fund over the same period.This great start will have certainly been helped by the timing of Smithson's launch which happened during a weak period for the stock market, thus valuations were lower for many companies. That's advantageous when trying to build a portfolio.A good start will boost sentiment towards the trust but it will take several more years before you can truly start to judge its performance.Smithson |
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