Fundsmith Equity - Opinions

MPN

Will anybody else give an opinion or alternatives in global funds to Fundsmith?

bigadaj

MPN wrote: »

Will anybody else give an opinion or alternatives in global funds to Fundsmith?

There's probably a few hundred options so you will get a wide range of opinions.

Have a look on monevator and Morningstar and trustnet and guve it soem thought. Then come back with your ideas and others can critique them.

MPN

bigadaj wrote: »

There's probably a few hundred options so you will get a wide range of opinions.

Have a look on monevator and Morningstar and trustnet and guve it soem thought. Then come back with your ideas and others can critique them.

OK so how about:-

JOHCM Global Opportunities
Ardevora Global Long-Only Equity
Rathbone Global Opportunities
Sanlam Four Stable Global Equity

Linton

MPN wrote: »

OK so how about:-

JOHCM Global Opportunities
Ardevora Global Long-Only Equity
Rathbone Global Opportunities
Sanlam Four Stable Global Equity

Assuming that I could only hold one fund so there was no issues about fitting in with the rest of the portfolio, and it had to be one of the 4 in your list.....

- Sanlam isnt a well known provider and the fund has only been going for a couple of years so that's a no.
- I have never heard of Ardevora. From the trustnet data it has equal holdings in a range of medium/smaller companies. It obviously has some sort of strategy, but I dont know what it is. So it's a no without deeper investigation.
- Both JOHCM and Rathbone are well established fund managers. The Rathbone fund shows some outperformance against the FTSE World Index over 10 years. However it is 60% invested in the US which is too high for my liking. It is overweight in technology which worries me a bit. The JOHCM fund outperformed the FTSE World Index over the past 3 years but over the same time period returned less than the Rathbone fund. It has only been around for just under 5 years so has yet to experience a serious downturn. However it is only 36% US invested and is more into "industrials" than technnology.

So nothing's perfect, but on balance I would go for the JOHCM fund as I believe asset allocation considerations and diversification outweigh simple short term performance.

Sue58

Linton wrote: »

Assuming that I could only hold one fund so there was no issues about fitting in with the rest of the portfolio, and it had to be one of the 4 in your list.....

- Sanlam isnt a well known provider and the fund has only been going for a couple of years so that's a no.
- I have never heard of Ardevora. From the trustnet data it has equal holdings in a range of medium/smaller companies. It obviously has some sort of strategy, but I dont know what it is. So it's a no without deeper investigation.
- Both JOHCM and Rathbone are well established fund managers. The Rathbone fund shows some outperformance against the FTSE World Index over 10 years. However it is 60% invested in the US which is too high for my liking. It is overweight in technology which worries me a bit. The JOHCM fund outperformed the FTSE World Index over the past 3 years but over the same time period returned less than the Rathbone fund. It has only been around for just under 5 years so has yet to experience a serious downturn. However it is only 36% US invested and is more into "industrials" than technnology.

So nothing's perfect, but on balance I would go for the JOHCM fund as I believe asset allocation considerations and diversification outweigh simple short term performance.

Having looked at the individual factsheets then I would also say either the Rathbone or JOHCM funds depending on your preference to US exposure.

I was looking at the following global options:

Fidelity Global Special Situations
Henderson Global Growth
Baillie Gifford Global Select
Old Mutual Global Equity

Any views/critique on this choice of global funds?

MPN

Sue58 wrote: »

Having looked at the individual factsheets then I would also say either the Rathbone or JOHCM funds depending on your preference to US exposure.

I was looking at the following global options:

Fidelity Global Special Situations
Henderson Global Growth
Baillie Gifford Global Select
Old Mutual Global Equity

Any views/critique on this choice of global funds?

I'm very pleased with my Old Mutual Global Equity fund and I used to also have Henderson Global Growth but switched this to Lindsell Train Global Equity (could of been a mistake but early days).

The Baillie Gifford and Fidelity funds also seem very decent funds from the information on Trustnet/factsheets

StellaN

Sue58 wrote: »

Having looked at the individual factsheets then I would also say either the Rathbone or JOHCM funds depending on your preference to US exposure.

I was looking at the following global options:

Fidelity Global Special Situations
Henderson Global Growth
Baillie Gifford Global Select
Old Mutual Global Equity

Any views/critique on this choice of global funds?

I did seriously consider Old Mutual but in the end went with Fundsmith and SMT for my global investments.

The Baillie Gifford Global Select is a fairly new fund although the performance so far is very good. According to Citywire, Henderson Global Growth has performed really well over the past 10 years. I also believe the Fidelity fund is quite popular. All these options are very different to Fundsmith!

BeatTheSystem

Fundsmith:

Low churn rate
Businesses invested in high free cash flow
Established

Even in a downturn most/all of his holdings will hold up quite well.

Perhaps it is better to hold 29 good stocks and stick with them than own a fund/trust with high turnover of holdings?

IMHO, One risk is currency , if Brexit does not happen then the pound will recover, if on the other hand the Brexit crowd are correct then GBP will eventually recover against the pound, either way this will dampen performance in sterling terms of funds that hold US stock. But then again, Brexit could be a complete cluster#uck (my prediction) and the pound will stay low for the future. I hold a 6 figure sum in Fundsmith.

ColdIron

BeatTheSystem wrote: »

if Brexit does not happen then the pound will recover

You think so? Sterling has no god given right to snap back like an elastic band to some previous valuation. I see it more like one of those pipe cleaners with a twisted wire core. Forces bent it into its current shape, forces will bend it to some future shape

if on the other hand the Brexit crowd are correct then GBP will eventually recover against the pound

Hard to see this happening

MPN

StellaN wrote: »

I did seriously consider Old Mutual but in the end went with Fundsmith and SMT for my global investments.

The Baillie Gifford Global Select is a fairly new fund although the performance so far is very good. According to Citywire, Henderson Global Growth has performed really well over the past 10 years. I also believe the Fidelity fund is quite popular. All these options are very different to Fundsmith!

Old Mutual and Fundsmith are both very good funds but the main overall difference is that the Old Mutual fund has approx 500 holdings compared to approx 29 for Fundsmith!