How safe is Fundsmith?
Discussion
Chaps,
An odd Q perhaps but I'll ask it anyway; how safe is Fundsmith?
I'm not bothered about whether it will go down or up (that's the risk of the game) but what are the odds of someone in the fund nicking off with all the money in it? Apparently they don't sign up to the FCA code of conduct - should that be a concern?
Oli.
An odd Q perhaps but I'll ask it anyway; how safe is Fundsmith?
I'm not bothered about whether it will go down or up (that's the risk of the game) but what are the odds of someone in the fund nicking off with all the money in it? Apparently they don't sign up to the FCA code of conduct - should that be a concern?
Oli.
As safe as a lot of other funds I guess ...Ive been invested with them a while now and its doing well
quote from their website: "This financial promotion is intended for UK residents only and is communicated by Fundsmith LLP which is authorised and regulated by the Financial Conduct Authority."
quote from their website: "This financial promotion is intended for UK residents only and is communicated by Fundsmith LLP which is authorised and regulated by the Financial Conduct Authority."
Fundsmith are a bit of an oddity, being essentially a single manager with a very lightweight organisation around him.
The upside is that the performance has been very good, costs are lower than average and it's one of the few funds you can invest in directly without going through a wrapper/platform.
You need to understand the manager's investment views and largest holdings; he seems to follow the Berkeley Hathaway model and invests for the long term in (mostly US-based) solid businesses e.g. Microsoft, pharmacos and household names are some of the funds biggest holdings.
In terms of risk of the fund disappearing, I'd rate that risk as significantly less than investing in a "big name" fund and watching it underperform against the index whilst the managers take a socking great fee.
The fund performance mirrors the Dow but in an amplified fashion, but you need to look at a long term hold to really get the value from this fund. I took a tactical position in this a month ago and I'm taking the 15% growth it's done since then.
The upside is that the performance has been very good, costs are lower than average and it's one of the few funds you can invest in directly without going through a wrapper/platform.
You need to understand the manager's investment views and largest holdings; he seems to follow the Berkeley Hathaway model and invests for the long term in (mostly US-based) solid businesses e.g. Microsoft, pharmacos and household names are some of the funds biggest holdings.
In terms of risk of the fund disappearing, I'd rate that risk as significantly less than investing in a "big name" fund and watching it underperform against the index whilst the managers take a socking great fee.
The fund performance mirrors the Dow but in an amplified fashion, but you need to look at a long term hold to really get the value from this fund. I took a tactical position in this a month ago and I'm taking the 15% growth it's done since then.
Trustnet has it at around 13.5% on a "1m" view, so it splits our figures down the middle :-)
I was rebalancing my portfolio for more equity as the markets were down over 10% a month ago, and this one took my eye for a slice. I thought I might hold it for the long term in line with the fund mandate, but the DowJ suddenly looks a bit peaky to me so I'm going to take my gains for now. I do intend to get back into this fund for the long term at some point, however. It's a bit "different" from other funds I hold so could be complementary. I'm not wild about Microsoft's prospects and what that might do to the fund value, however, given its exposure.
I was rebalancing my portfolio for more equity as the markets were down over 10% a month ago, and this one took my eye for a slice. I thought I might hold it for the long term in line with the fund mandate, but the DowJ suddenly looks a bit peaky to me so I'm going to take my gains for now. I do intend to get back into this fund for the long term at some point, however. It's a bit "different" from other funds I hold so could be complementary. I'm not wild about Microsoft's prospects and what that might do to the fund value, however, given its exposure.
Gassing Station | Finance | Top of Page | What's New | My Stuff