Fundsmith Feet

Vrodman_2

Can anyone explain simply what the new Fundsmith Emerging Equities Trust is (FEET)? Is it another equity fund and, if so, is its launch at odds with Terry Smiths assurance at the shareholders meeting 2012 (Youtube) that 'there is only ONE Fundsmith fund, and so it had better work'?

.....or have I got the wrong end of the stick?

DaveTheMus

I'm quite surprised aswell.........I will be investing in it though, can't fault Fundsmith, I'll get in on this one early

jimjames

Maybe it's down to the words.

There is only one Fundsmith fund and that remains the case.

This is an investment trust which isn't a fund - so he has kept to his word.

Sensible move though as an IT is more suited to emerging markets.

aldershot

It's because the structure of an OEIC doesn't suit an EM fund and EM goes against the philosophy of the main fund. I think they've identified a universe of stocks that look interesting but don't want to pollute the main fund which is pretty defensive (as TS pointed out in the letter).

SnowMan

Interesting interview with Terry Smith on the Money Observer website. They've headlined it Why you won't find my fund in the 'Wealth 150'.

http://www.moneyobserver.com/tv/terry-smith-why-you-won-t-find-my-fund-wealth-150

Not an investment for me.

But he makes some very good general points in that interview about controlling charges being all important.

Linton

DaveTheMus wrote: »

I'm quite surprised aswell.........I will be investing in it though, can't fault Fundsmith, I'll get in on this one early

mmmm, the record of celebrity managers moving into new areas with no obvious experience has not been too good. I wouldnt regard Fundsmith as evidence of golden hands. The type of shares he likes (large well run cash generative fairly defensive) have done extremely well generally over the past couple of years.

aldershot

SnowMan wrote: »

Not an investment for me.

Just for interest, what puts you off?

Disclosure: I own the fund.

SnowMan

aldershot wrote: »

Just for interest, what puts you off?

Disclosure: I own the fund.

I'm a purely passive (tracker) investor, that's the only reason.

DaveTheMus

Linton wrote: »

mmmm, the record of celebrity managers moving into new areas with no obvious experience has not been too good. I wouldnt regard Fundsmith as evidence of golden hands. The type of shares he likes (large well run cash generative fairly defensive) have done extremely well generally over the past couple of years.

It will be gamble so i'll not be putting more than I can afford to lose....

The thing that attracted me to Fundsmith was the fact it is made up of large cash rich defensive stocks, when the markets have a correction the companies like Colgate and Coca Cola will be a good bet at that time.

TS said that when markets are performing well it's hard to gauge the success of Fundsmith and that it comes into it's own when the markets have a downturn......only time will tell I suppose.

I like the way he operates and his investment philosophy.

grizzly1911

DaveTheMus wrote: »

It will be gamble so i'll not be putting more than I can afford to lose....

The thing that attracted me to Fundsmith was the fact it is made up of large cash rich defensive stocks, when the markets have a correction the companies like Colgate and Coca Cola will be a good bet at that time.

TS said that when markets are performing well it's hard to gauge the success of Fundsmith and that it comes into it's own when the markets have a downturn......only time will tell I suppose.

I like the way he operates and his investment philosophy.

Question is how long can you hold onto middling performance in a strengthening (apparently) world outlook without taking a hit overall.