Is there an equivalent to fundsmith Equity Fund?

Jhoney_2

Hi All,

Im trying to put together an S&S Isa and like the holdings in this fund, but it is a pretty expensive proposition compared with the others I have selected. Not looking for pros/cons of fund or anything like that if that matters.

Any ideas/links on where/which platforms I should be looking would be appreciated. If there isn't one, that will be enough information actually!

In my dreamworld I would put in the fund references and all the providers would appear in a nice list tied with a ribbon....

Am having similar trouble whilst trying to arrange a personal/stakeholder pension. I found all my funds only to find out they could only be obtained under the SIPP offering:(

george4064

Here's a very useful link to help you decide which platform to go for: http://monevator.com/compare-uk-cheapest-online-brokers/

There's no point trying to 'replicate' the fund, your best option is to look at other funds/ITs in the same sector as Fundsmith Equity and choose from there.

AnotherJoe

Jhoney wrote: »

Hi All,

Im trying to put together an S&S Isa and like the holdings in this fund, but it is a pretty expensive proposition compared with the others I have selected.

In what sense do you think its expensive?

Do you mean the management fees?
The current price of the fund units?
Something else?

And when you say "compared with the others" what are those others?
Are they active funds also? Or passive?

Linton

There is nothing equivalent to Fundsmith. This is a idiosyncratic conviction fund run by Terry Smith. It invests in relatively few carefully chosen global companies with a buy and hold philosophy. It is rather unbalanced by sector. Over its first 2 years it performed very well, within the top 5 in its sector. However its performance this year has been pretty average.

If you strongly share Terry Smith's convictions then this is the fund you must go for. Otherwise, unless you have strong feelings on other directions, you may as well go for a global tracker. There is a thread devoted to global trackers.

Jhoney_2

george4064 wrote: »

Here's a very useful link to help you decide which platform to go for: http://monevator.com/compare-uk-cheapest-online-brokers/

There's no point trying to 'replicate' the fund, your best option is to look at other funds/ITs in the same sector as Fundsmith Equity and choose from there.

Thanks for replying . I will definitely do that next.

Jhoney_2

AnotherJoe wrote: »

In what sense do you think its expensive?

Do you mean the management fees?
The current price of the fund units?
Something else?

And when you say "compared with the others" what are those others?
Are they active funds also? Or passive?

Hi anotherjoe. Yes I meant the AMC at 0.97 TER. The others I wanted were all < 0.25

• Fidelity Index Emerging Markets P Acc
• Vanguard LifeStrategy 80% Equity Acc
• BlackRock North American Equity Tracker L Acc
• Legal & General All Stocks Gilt Index M Acc

Was also considering VLS60. I hope they are all passive as that was my assessment and preferred option.

Jhoney_2

Linton wrote: »

There is nothing equivalent to Fundsmith. This is a idiosyncratic conviction fund run by Terry Smith. It invests in relatively few carefully chosen global companies with a buy and hold philosophy. It is rather unbalanced by sector. Over its first 2 years it performed very well, within the top 5 in its sector. However its performance this year has been pretty average.

If you strongly share Terry Smith's convictions then this is the fund you must go for. Otherwise, unless you have strong feelings on other directions, you may as well go for a global tracker. There is a thread devoted to global trackers.

Hi Linton, I merely wanted to invest in some of the holdings that are not in the blackrock offering above. Not sentimental about it really, but there is a larger investment share in them also. I will be doing some more research however.

Thanks:)

Linton

Jhoney wrote: »

Hi Linton, I merely wanted to invest in some of the holdings that are not in the blackrock offering above. Not sentimental about it really, but there is a larger investment share in them also. I will be doing some more research however.

Thanks:)

Fundsmith is a global fund, though with a larger UK allocation than a tracker. All US companies in Fundsmith will be in the Blackrock US tracker, though in different proportions.

Why are you considering a US tracker as well as VLS?? The US is the largest equity component of the VLS funds.

wooder

Linton wrote: »

There is nothing equivalent to Fundsmith. Over its first 2 years it performed very well, within the top 5 in its sector. However its performance this year has been pretty average.

Actually it's first two years were it's lowest performing - 8.36% for 2011 and 12.52% for 2012. Since then it's performed at 25%,23% and 15.7% for 2013,14 and 15 respectively.

This year it's up 26.94% year to date or 29.89% from this day last year ..... is that 'pretty average' ??





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AnotherJoe

Jhoney wrote: »

Hi anotherjoe. Yes I meant the AMC at 0.97 TER. The others I wanted were all < 0.25

• Fidelity Index Emerging Markets P Acc
• Vanguard LifeStrategy 80% Equity Acc
• BlackRock North American Equity Tracker L Acc
• Legal & General All Stocks Gilt Index M Acc

Was also considering VLS60. I hope they are all passive as that was my assessment and preferred option.

Well, you are comparing apples with oranges then, either you buy into the idea of active funds, or you don't, or you might decide that you'll have mostly passive funds but still have one or two active to balance that.

As it happens I have mostly all passive funds (or etfs etc ) but I do hold a couple of actives, fundsmith being one. If you like TS's selection, well then it only seems fair to pay for it and it will certainly be a lot cheaper than buying the constituents separately.

You are taking a gamble that TS's expertise and selections will outperform a passive fund. If it does the extra money is well worth it. If it doesn't then sell it two or three years down the line it's unlikely to have done substantially worse than passives.

Jhoney_2

Linton wrote: »

Fundsmith is a global fund, though with a larger UK allocation than a tracker. All US companies in Fundsmith will be in the Blackrock US tracker, though in different proportions.

Why are you considering a US tracker as well as VLS?? The US is the largest equity component of the VLS funds.

Not much in the 80 or 60 as far I could see, but this is new to me so I will take it under advisement as I continue searching/reading and evaluating.