Anyone dumping Fundsmith?

talexuser

For a global tracker? Or something else. I'm 50:50 on whether they will outperform again now with rates coming down, or will a drop in charges to one of my trackers pay off for the next few years. Opinions welcome.

RM

Long time ago. No regrets at all.

ColdIron

I've had it in a couple of accounts since 2014/2016 and it's up 127% ~280%/107% for me so I'm happy enough to date. Will it continue to perform at previous levels? Who knows. His recent underperformance is down to stock selection but that goes with the territory. Volatility is another factor that may matter to some of his investors and he scores well on that compared to other benchmarks. Can he outperform an index going forward? I think he has the capacity to

It's the only actively managed fund I have in my growth portfolio, about 7.5%, all the rest are trackers so it's not an either/or for me and I have no plans to change anything there

However I will be reducing my SIPP withdrawals soon so rotating somewhat from income to growth in that portfolio and that will be into trackers not Fundsmith. Make of that what you will

ColdIron

talexuser said:

will a drop in charges to one of my trackers pay off for the next few years.

Performance is measured net of charges. However at ~1.00% Fundsmith isn't cheap

If you reduced that down to the 0.1/ 0.2% region you have that in the bank

Hope that helps

talexuser

I'm up 131% since 2016 according to Trustnet portfolio calcs and my spreadsheets, and was prepared to just sit it out, as taking some rough with the exceptionally good smooth, but the past 3 years has been a relative hit, and looking at my 0.12% charges world trackers in comparison, am havering in the new tax year rebalancing...

Bostonerimus1

I would not own Fundsmith for philosophical reasons and to avoid the questions raised when active funds underperform. The OP's question should have been asked when Fundsmith was doing well and if Fundsmith fit the OP's portfolio originally what's changed to require selling it. This is what happens when a portfolio is built on current good performers rather than on a foundation of general asset allocation.

Linton

talexuser said:

For a global tracker? Or something else. I'm 50:50 on whether they will outperform again now with rates coming down, or will a drop in charges to one of my trackers pay off for the next few years. Opinions welcome.

Why should someone dump Fundsmith?  I dont believe the Fundsmith investment strategy has changed.  Have your requirements changed?

Prism

When it was performing better than the market until late 2021 I just held what I had and didn't add any more. Since 2022 I have been adding Fundsmith to my workplace pension every month automatically. Overall in the SIPP and workplace pension I am around 45% Fundsmith and have no intention to lower it. The investment process is exactly the same as it was when I started investing in it nine years ago.

ChesterDog

I dumped it a while ago - having held it since launch - as I reorganised  my portfolio to be (even) more passive.

Performance relative to a World Quality Tracker that I now hold in its place:

poseidon1

Mine is up 60% after acquiring almost 5 years ago, so despite the dog years reasonably happy especially since I had rotated out of Lindsell Train Global Equity to do so.
Planning to realise the gain and retain the original  invested amount to see if potential interest rate falls assist in a possible revival in the near term.

The gain will likely be part invested in a new fund ( Nutshell Growth ) which has had a decent 2 year start, and the balance in JP Morgan Global Growth & Income  Investment Trust which carries a reasonable 3% dividend yield.   Could have settled for cheaper Global trackers or etfs, but wanted to see what a couple of very different active managers can do compared with Fundsmith.

NoviceInvestor1

poseidon1 said:

Mine is up 60% after acquiring almost 5 years ago, so despite the dog years reasonably happy especially since I had rotated out of Lindsell Train Global Equity to do so.
Planning to realise the gain and retain the original  invested amount to see if potential interest rate falls assist in a possible revival in the near term.

The gain will likely be part invested in a new fund ( Nutshell Growth ) which has had a decent 2 year start, and the balance in JP Morgan Global Growth & Income  Investment Trust which carries a reasonable 3% dividend yield.   Could have settled for cheaper Global trackers or etfs, but wanted to see what a couple of very different active managers can do compared with Fundsmith.

  Nutshell Growth is 5 years old, returned 4% in 2020, minus 19% in 2022 and charges 1.70%…good luck!