Fundsmith - which one?

economic

Hi

i am thinking of buying the fundsmith managed fund in my portfolio. there are two versions i can choose from - I and T.

T has a higher annual charge but the unit costs less vs the I version.

Which one should i go for and why? i will go for the accumulation version in any case.

thanks

ColdIron

Which version does your platform offer?

Rollinghome

economic wrote: »

Hi

i am thinking of buying the fundsmith managed fund in my portfolio. there are two versions i can choose from - I and T.

T has a higher annual charge but the unit costs less vs the I version.

Which one should i go for and why? i will go for the accumulation version in any case.

thanks

As I remember, T is the version you can buy directly from Mr Smith and I is the version offered by platforms. So if the T version is cheaper than the I version + platform charge then you might want to consider it but that would come with less flexibility.

The price of the different units is irrelevant, they should both reflect the underlying value of the fund's assets.

economic

Rollinghome wrote: »

As I remember, T is the version you can buy directly from Mr Smith and I is the version offered by platforms. So if the T version is cheaper than the I version + platform charge then you might want to consider it but that would come with less flexibility.

The price of the different units is irrelevant, they should both reflect the underlying value of the fund's assets.

the platform offers both T and I. I seems to have minimum investment as 5m according to his factsheet however i think i can still buy this one via my platform (when i click buy it doesnt mention about minimum funds and i have way less then 5m

ironhead

Why buy via a platform when you can buy 'direct from the factory'.... other than if you can't meet the minimum investment requirements of either a £1000 lump sum or a £100 /month d/debit ?

You want the T class Acc and preferably ISA and you can do it direct from the Fundsmith website (or phone them up, they generally answer straight away). If you do this you will have no platform charges, no entry or exit fees, no performance fees, in fact, no other fees at all from the price shown which is net of all management charges.

You will also get reports and newsletters direct from Terry and an invitation to his annual shareholder meeting, which you don't get if you go via a platform.

economic

ironhead wrote: »

Why buy via a platform when you can buy 'direct from the factory'.... other than if you can't meet the minimum investment requirements of either a £1000 lump sum or a £100 /month d/debit ?

You want the T class Acc and preferably ISA and you can do it direct from the Fundsmith website (or phone them up, they generally answer straight away). If you do this you will have no platform charges, no entry or exit fees, no performance fees, in fact, no other fees at all from the price shown which is net of all management charges.

You will also get reports and newsletters direct from Terry and an invitation to his annual shareholder meeting, which you don't get if you go via a platform.

thanks for that. is the money protected in anyway? if fundsmith fraud happens or something? with my platform there is a FSCS protection.

ColdIron

economic wrote: »

the platform offers both T and I. I seems to have minimum investment as 5m according to his factsheet however i think i can still buy this one via my platform (when i click buy it doesnt mention about minimum funds and i have way less then 5m

Many platforms will let you use different classes for comparison etc but will only offer one for sale. I am guessing you will be offered the I class

Which platform are you using?

ironhead

economic wrote: »

thanks for that. is the money protected in anyway? if fundsmith fraud happens or something? with my platform there is a FSCS protection.

You can watch the latest Annual Shareholder Meeting 2017 on Youtube (or link to it direct from the FS website) and he answers this question plus a whole lot more in the video - well worth a watch

PS.....plus a hilarious expose of Hargreaves Lansdown and the Wealth 150

badger09

ironhead wrote: »

Why buy via a platform when you can buy 'direct from the factory'.... other than if you can't meet the minimum investment requirements of either a £1000 lump sum or a £100 /month d/debit ?

You want the T class Acc and preferably ISA and you can do it direct from the Fundsmith website (or phone them up, they generally answer straight away). If you do this you will have no platform charges, no entry or exit fees, no performance fees, in fact, no other fees at all from the price shown which is net of all management charges.

You will also get reports and newsletters direct from Terry and an invitation to his annual shareholder meeting, which you don't get if you go via a platform.

You might not want to invest the whole of this year's S&S ISA in Fundsmith:cool:

ColdIron

ironhead wrote: »

You want the T class Acc and preferably ISA and you can do it direct from the Fundsmith website (or phone them up, they generally answer straight away). If you do this you will have no platform charges, no entry or exit fees, no performance fees, in fact, no other fees at all from the price shown which is net of all management charges.

This might be viable if you are happy to only hold a Fundsmith product in your ISA. Any other investments will have to be held unwrapped. You could open another ISA next year for them but then you couldn't contribute any more to the Fundsmith one. Not an arrangement that would suit everyone I suggest

The higher OCF makes up for an overt platform fee, flat fee providers may work out to be cheaper. Many platforms will not charge entry or exit fees and Fundsmith does not charge a performance fee to anybody

economic

ColdIron wrote: »

Many platforms will let you use different classes for comparison etc but will only offer one for sale. I am guessing you will be offered the I class

Which platform are you using?

i am using TD direct.