Discussion
Quick look on Morningstar, Fundsmith and Lindsell Train that I looked at had 27 equity holdings each with 47% and 60% of the funds assets in the top ten holdings respectively.
Randomly selected global Vanguard fund had 2058 equity holdings and only 13.5% of the fund’s assets in the top ten holdings.
The only overlap between FS & LT I noticed in their top tens was PayPal and Pepsi.
Against the Vanguard fund, FS also held Microsoft and Facebook.
Obviously that’s only looking at the top ten holdings, I don’t actually know where you could obtain more granular information than that.
Randomly selected global Vanguard fund had 2058 equity holdings and only 13.5% of the fund’s assets in the top ten holdings.
The only overlap between FS & LT I noticed in their top tens was PayPal and Pepsi.
Against the Vanguard fund, FS also held Microsoft and Facebook.
Obviously that’s only looking at the top ten holdings, I don’t actually know where you could obtain more granular information than that.
emicen said:
Quick look on Morningstar, Fundsmith and Lindsell Train that I looked at had 27 equity holdings each with 47% and 60% of the funds assets in the top ten holdings respectively.
Randomly selected global Vanguard fund had 2058 equity holdings and only 13.5% of the fund’s assets in the top ten holdings.
The only overlap between FS & LT I noticed in their top tens was PayPal and Pepsi.
Against the Vanguard fund, FS also held Microsoft and Facebook.
Obviously that’s only looking at the top ten holdings, I don’t actually know where you could obtain more granular information than that.
13F.Randomly selected global Vanguard fund had 2058 equity holdings and only 13.5% of the fund’s assets in the top ten holdings.
The only overlap between FS & LT I noticed in their top tens was PayPal and Pepsi.
Against the Vanguard fund, FS also held Microsoft and Facebook.
Obviously that’s only looking at the top ten holdings, I don’t actually know where you could obtain more granular information than that.
https://www.holdingschannel.com/13f/fundsmith-llp-...
So did anybody go to the Shareholders AGM in London last week ?
Shame it wasn't this week, would like to have heard Uncle Tel's view of the Coronavirus plunge late last week.
I'm guessing it'll be up on Youtube soon for anybody who's interested.
Shame it wasn't this week, would like to have heard Uncle Tel's view of the Coronavirus plunge late last week.
I'm guessing it'll be up on Youtube soon for anybody who's interested.
Edited by BlackG7R on Tuesday 3rd March 18:20
SJfW said:
Started putting some of my monthly ISA contribution in to Fundsmith & Lindsell Train in June.
Fundsmith is up, LT is down, neither have matched the performance of my ongoing drip feed in to Vanguard over the period.
I started buying in to them to up the proportion of my fund that was in defensive stocks. Im glad I went with changing future contributions rather than a re-balancing buy!
I'm not sure what a "defensive" stock is, but it might be worth ensuring you are clear on the investment style the above managers take and whether there are any potential downsides.Fundsmith is up, LT is down, neither have matched the performance of my ongoing drip feed in to Vanguard over the period.
I started buying in to them to up the proportion of my fund that was in defensive stocks. Im glad I went with changing future contributions rather than a re-balancing buy!
Derek Chevalier said:
SJfW said:
Started putting some of my monthly ISA contribution in to Fundsmith & Lindsell Train in June.
Fundsmith is up, LT is down, neither have matched the performance of my ongoing drip feed in to Vanguard over the period.
I started buying in to them to up the proportion of my fund that was in defensive stocks. Im glad I went with changing future contributions rather than a re-balancing buy!
I'm not sure what a "defensive" stock is, but it might be worth ensuring you are clear on the investment style the above managers take and whether there are any potential downsides.Fundsmith is up, LT is down, neither have matched the performance of my ongoing drip feed in to Vanguard over the period.
I started buying in to them to up the proportion of my fund that was in defensive stocks. Im glad I went with changing future contributions rather than a re-balancing buy!
My holdings X-ray lead me to conclude I was light on defensive, pretty balanced on cyclical and sensitive.
Fundsmith & Lindsell Train had greater defensive sector weightings in their holdings than the other trackers I had been paying in to.
I’m still light on utilities but a bit more balanced overall.
I assume regarding a specific fund most people are taking about the T class Accumulation fund?
https://uk.finance.yahoo.com/quote/0P0000RU7W.L?p=...
https://uk.finance.yahoo.com/quote/0P0000RU7W.L?p=...
SJfW said:
Derek Chevalier said:
SJfW said:
Started putting some of my monthly ISA contribution in to Fundsmith & Lindsell Train in June.
Fundsmith is up, LT is down, neither have matched the performance of my ongoing drip feed in to Vanguard over the period.
I started buying in to them to up the proportion of my fund that was in defensive stocks. Im glad I went with changing future contributions rather than a re-balancing buy!
I'm not sure what a "defensive" stock is, but it might be worth ensuring you are clear on the investment style the above managers take and whether there are any potential downsides.Fundsmith is up, LT is down, neither have matched the performance of my ongoing drip feed in to Vanguard over the period.
I started buying in to them to up the proportion of my fund that was in defensive stocks. Im glad I went with changing future contributions rather than a re-balancing buy!
My holdings X-ray lead me to conclude I was light on defensive, pretty balanced on cyclical and sensitive.
Fundsmith & Lindsell Train had greater defensive sector weightings in their holdings than the other trackers I had been paying in to.
I’m still light on utilities but a bit more balanced overall.
Derek Chevalier said:
Ah OK, I think it's just worth being clear that defensive doesn't mean that the stocks (or the fund that holds these stocks) will necessarily fare any better than the overall market during falls.
Oh absolutely.Purely by chance they were the only green in my sea of red yesterday but their performance in the downturn hasn’t been much different to the global or emerging passives, neither of them.
Bonds have faired better, I never got round to precious metals last year, let’s not even talk about the individually bought stocks I carried over in to my ISA when setting it up. Not a good year for banks, oilers and miners!
It’s been a very real demonstration of the mantra and benefits of diversification.
“Fundsmith’s Terry Smith blasts platforms for fuelling illusion of fund liquidity” (FT)
(8 March 2020)
- Fund manager accuses Hargreaves Lansdown and others of putting investors at risk
- Terry Smith pinned the blame on commercial interests rather than regulations
Terry Smith has launched a fresh assault on the UK’s powerful investment supermarkets, accusing the likes of Hargreaves Lansdown of sowing the seeds of Woodford-style investor runs by propagating a myth of instant liquidity.
The prominent City fund manager, who runs the UK’s largest retail fund, said investment supermarkets had forced fund managers to shoehorn their investment strategies into an instant-access fund format, even when their underlying assets could take weeks or months to sell.
The fund management sector was battered last year by a range of high-profile liquidity crunches at daily traded investment funds, led by Neil Woodford’s now-defunct Equity Income fund. M&G’s £2.5bn property fund and a range of bond funds run by Natixis subsidiary H2O Asset Management were also hit.
The problems prompted calls for changes to so-called Ucits rules that govern retail funds. Mark Carney, the outgoing governor of the Bank of England, famously described such funds as being “built on a lie”.
But Mr Smith pinned the blame on commercial interests rather than regulations. He said that despite there being no requirement in the Ucits directive for funds to provide daily dealing, investment supermarkets had turned the structure into the dominant market practice by refusing to sell funds with less frequent redemption terms.
“There is nothing wrong per se with open-ended funds owning [hard-to-sell] companies,” Mr Smith said in an interview with FTfm. “What is clearly wrong is putting such instruments in a daily dealing fund. But at the moment you can’t list a fund on a platform in the UK unless it’s a daily dealing fund.”
Mr Smith warned the refusal of investment supermarkets to sell funds with monthly or quarterly redemption terms had damaging repercussions, leaving managers of less liquid investment strategies “in the same position of banks faced with a run”.
Ucits rules cap funds’ exposure to unlisted securities at 10 per cent of assets to reduce the likelihood of a liquidity crunch. The Financial Times revealed last week that seven funds, excluding the Woodford fund, had exceeded this limit a total of eight times since June 2017.
Mr Smith said the financial regulator needed to “wake up” to the widespread use of daily dealing funds and force investment platforms to start selling funds with less frequent liquidity.
Mr Smith’s fund, Fundsmith Equity, offers daily redemption terms but is mainly invested in large-cap, highly liquid companies.
But the UK’s largest investment supermarkets denied they had refused to list funds with less frequent redemption funds, saying that their offering reflected customer demand.
Hargreaves Lansdown, Interactive Investor and AJ Bell mainly sell daily dealing funds but said they did not insist on this format. Barclays and Fidelity exclusively sell daily dealing funds.
Mr Smith has locked horns with Hargreaves Lansdown before. Last year, he hit out at the FTSE 100-listed group’s “best buy” list of recommended funds, which he said was based on managers’ willingness to offer discounts rather than their performance.
The Woodford crisis shone an unforgiving light on the cosy relationships between investment supermarkets and fund managers. Just three months before the scandal broke, the Financial Conduct Authority had given the platforms a clean bill of health.
FT Link: https://www.ft.com/content/59fa6b5c-9706-45b7-8222...
(8 March 2020)
- Fund manager accuses Hargreaves Lansdown and others of putting investors at risk
- Terry Smith pinned the blame on commercial interests rather than regulations
Terry Smith has launched a fresh assault on the UK’s powerful investment supermarkets, accusing the likes of Hargreaves Lansdown of sowing the seeds of Woodford-style investor runs by propagating a myth of instant liquidity.
The prominent City fund manager, who runs the UK’s largest retail fund, said investment supermarkets had forced fund managers to shoehorn their investment strategies into an instant-access fund format, even when their underlying assets could take weeks or months to sell.
The fund management sector was battered last year by a range of high-profile liquidity crunches at daily traded investment funds, led by Neil Woodford’s now-defunct Equity Income fund. M&G’s £2.5bn property fund and a range of bond funds run by Natixis subsidiary H2O Asset Management were also hit.
The problems prompted calls for changes to so-called Ucits rules that govern retail funds. Mark Carney, the outgoing governor of the Bank of England, famously described such funds as being “built on a lie”.
But Mr Smith pinned the blame on commercial interests rather than regulations. He said that despite there being no requirement in the Ucits directive for funds to provide daily dealing, investment supermarkets had turned the structure into the dominant market practice by refusing to sell funds with less frequent redemption terms.
“There is nothing wrong per se with open-ended funds owning [hard-to-sell] companies,” Mr Smith said in an interview with FTfm. “What is clearly wrong is putting such instruments in a daily dealing fund. But at the moment you can’t list a fund on a platform in the UK unless it’s a daily dealing fund.”
Mr Smith warned the refusal of investment supermarkets to sell funds with monthly or quarterly redemption terms had damaging repercussions, leaving managers of less liquid investment strategies “in the same position of banks faced with a run”.
Ucits rules cap funds’ exposure to unlisted securities at 10 per cent of assets to reduce the likelihood of a liquidity crunch. The Financial Times revealed last week that seven funds, excluding the Woodford fund, had exceeded this limit a total of eight times since June 2017.
Mr Smith said the financial regulator needed to “wake up” to the widespread use of daily dealing funds and force investment platforms to start selling funds with less frequent liquidity.
Mr Smith’s fund, Fundsmith Equity, offers daily redemption terms but is mainly invested in large-cap, highly liquid companies.
But the UK’s largest investment supermarkets denied they had refused to list funds with less frequent redemption funds, saying that their offering reflected customer demand.
Hargreaves Lansdown, Interactive Investor and AJ Bell mainly sell daily dealing funds but said they did not insist on this format. Barclays and Fidelity exclusively sell daily dealing funds.
Mr Smith has locked horns with Hargreaves Lansdown before. Last year, he hit out at the FTSE 100-listed group’s “best buy” list of recommended funds, which he said was based on managers’ willingness to offer discounts rather than their performance.
The Woodford crisis shone an unforgiving light on the cosy relationships between investment supermarkets and fund managers. Just three months before the scandal broke, the Financial Conduct Authority had given the platforms a clean bill of health.
FT Link: https://www.ft.com/content/59fa6b5c-9706-45b7-8222...
Guest said:
“Fundsmith’s Terry Smith blasts platforms for fuelling illusion of fund liquidity” (FT)
(8 March 2020)
- Fund manager accuses Hargreaves Lansdown and others of putting investors at risk
- Terry Smith pinned the blame on commercial interests rather than regulations
Terry Smith has launched a fresh assault on the UK’s powerful investment supermarkets, accusing the likes of Hargreaves Lansdown of sowing the seeds of Woodford-style investor runs by propagating a myth of instant liquidity.
The prominent City fund manager, who runs the UK’s largest retail fund, said investment supermarkets had forced fund managers to shoehorn their investment strategies into an instant-access fund format, even when their underlying assets could take weeks or months to sell.
The fund management sector was battered last year by a range of high-profile liquidity crunches at daily traded investment funds, led by Neil Woodford’s now-defunct Equity Income fund. M&G’s £2.5bn property fund and a range of bond funds run by Natixis subsidiary H2O Asset Management were also hit.
The problems prompted calls for changes to so-called Ucits rules that govern retail funds. Mark Carney, the outgoing governor of the Bank of England, famously described such funds as being “built on a lie”.
But Mr Smith pinned the blame on commercial interests rather than regulations. He said that despite there being no requirement in the Ucits directive for funds to provide daily dealing, investment supermarkets had turned the structure into the dominant market practice by refusing to sell funds with less frequent redemption terms.
“There is nothing wrong per se with open-ended funds owning [hard-to-sell] companies,” Mr Smith said in an interview with FTfm. “What is clearly wrong is putting such instruments in a daily dealing fund. But at the moment you can’t list a fund on a platform in the UK unless it’s a daily dealing fund.”
Mr Smith warned the refusal of investment supermarkets to sell funds with monthly or quarterly redemption terms had damaging repercussions, leaving managers of less liquid investment strategies “in the same position of banks faced with a run”.
Ucits rules cap funds’ exposure to unlisted securities at 10 per cent of assets to reduce the likelihood of a liquidity crunch. The Financial Times revealed last week that seven funds, excluding the Woodford fund, had exceeded this limit a total of eight times since June 2017.
Mr Smith said the financial regulator needed to “wake up” to the widespread use of daily dealing funds and force investment platforms to start selling funds with less frequent liquidity.
Mr Smith’s fund, Fundsmith Equity, offers daily redemption terms but is mainly invested in large-cap, highly liquid companies.
But the UK’s largest investment supermarkets denied they had refused to list funds with less frequent redemption funds, saying that their offering reflected customer demand.
Hargreaves Lansdown, Interactive Investor and AJ Bell mainly sell daily dealing funds but said they did not insist on this format. Barclays and Fidelity exclusively sell daily dealing funds.
Mr Smith has locked horns with Hargreaves Lansdown before. Last year, he hit out at the FTSE 100-listed group’s “best buy” list of recommended funds, which he said was based on managers’ willingness to offer discounts rather than their performance.
The Woodford crisis shone an unforgiving light on the cosy relationships between investment supermarkets and fund managers. Just three months before the scandal broke, the Financial Conduct Authority had given the platforms a clean bill of health.
FT Link: https://www.ft.com/content/59fa6b5c-9706-45b7-8222...
Hmm (8 March 2020)
- Fund manager accuses Hargreaves Lansdown and others of putting investors at risk
- Terry Smith pinned the blame on commercial interests rather than regulations
Terry Smith has launched a fresh assault on the UK’s powerful investment supermarkets, accusing the likes of Hargreaves Lansdown of sowing the seeds of Woodford-style investor runs by propagating a myth of instant liquidity.
The prominent City fund manager, who runs the UK’s largest retail fund, said investment supermarkets had forced fund managers to shoehorn their investment strategies into an instant-access fund format, even when their underlying assets could take weeks or months to sell.
The fund management sector was battered last year by a range of high-profile liquidity crunches at daily traded investment funds, led by Neil Woodford’s now-defunct Equity Income fund. M&G’s £2.5bn property fund and a range of bond funds run by Natixis subsidiary H2O Asset Management were also hit.
The problems prompted calls for changes to so-called Ucits rules that govern retail funds. Mark Carney, the outgoing governor of the Bank of England, famously described such funds as being “built on a lie”.
But Mr Smith pinned the blame on commercial interests rather than regulations. He said that despite there being no requirement in the Ucits directive for funds to provide daily dealing, investment supermarkets had turned the structure into the dominant market practice by refusing to sell funds with less frequent redemption terms.
“There is nothing wrong per se with open-ended funds owning [hard-to-sell] companies,” Mr Smith said in an interview with FTfm. “What is clearly wrong is putting such instruments in a daily dealing fund. But at the moment you can’t list a fund on a platform in the UK unless it’s a daily dealing fund.”
Mr Smith warned the refusal of investment supermarkets to sell funds with monthly or quarterly redemption terms had damaging repercussions, leaving managers of less liquid investment strategies “in the same position of banks faced with a run”.
Ucits rules cap funds’ exposure to unlisted securities at 10 per cent of assets to reduce the likelihood of a liquidity crunch. The Financial Times revealed last week that seven funds, excluding the Woodford fund, had exceeded this limit a total of eight times since June 2017.
Mr Smith said the financial regulator needed to “wake up” to the widespread use of daily dealing funds and force investment platforms to start selling funds with less frequent liquidity.
Mr Smith’s fund, Fundsmith Equity, offers daily redemption terms but is mainly invested in large-cap, highly liquid companies.
But the UK’s largest investment supermarkets denied they had refused to list funds with less frequent redemption funds, saying that their offering reflected customer demand.
Hargreaves Lansdown, Interactive Investor and AJ Bell mainly sell daily dealing funds but said they did not insist on this format. Barclays and Fidelity exclusively sell daily dealing funds.
Mr Smith has locked horns with Hargreaves Lansdown before. Last year, he hit out at the FTSE 100-listed group’s “best buy” list of recommended funds, which he said was based on managers’ willingness to offer discounts rather than their performance.
The Woodford crisis shone an unforgiving light on the cosy relationships between investment supermarkets and fund managers. Just three months before the scandal broke, the Financial Conduct Authority had given the platforms a clean bill of health.
FT Link: https://www.ft.com/content/59fa6b5c-9706-45b7-8222...
Why could Terry be going on about the unfairness of illiquid assets in funds?
"The prominent City fund manager, who runs the UK’s largest retail fund, said investment supermarkets had forced fund managers to shoehorn their investment strategies into an instant-access fund format, even when their underlying assets could take weeks or months to sell." (my emphasis)
Perhaps this gives an answer...
“There is nothing wrong per se with open-ended funds owning [hard-to-sell] companies,” Mr Smith said in an interview with FTfm.
When you only have 7 day liquidity at c. 64% and you have commented on there being nothing wrong with holding assets that could take months to sell then we get the bigger picture here.
For the record, I am not in any way suggesting Fundsmith could be the next Woodford, just highlighting that in the highly unlikely event of a run on this fund there does not appear to be full daily liquidity, according to their own figures (not mine).
You can be well assured that Terry Smith is not concerned about Fundsmith fund liquidity and the ability to manage daily flows. The FT interview was an opportunity to point out a weakness in other managers’ funds...
For example, at Fundsmith, as of month ended Feb-2020:
Number of Holdings: 28
Average Market Cap of Investments: £113.3bn
KEY FACTS
Fund Size £17.8bn
Gross / Net Yield< 1.68% / 0.63%
2019 Portfolio Turnover Ratio -4.1%
7 Day Fund Liquidity> 64%
No. Holdings 28
Average Co. Founded 1925
Average Market Cap £113.3bn
Active Share as at 30.06.19" 92%
2019 Transaction Costs 0.01%
FUND PERFORMANCE ANALYSIS
To 28 Feb 2020, T Class Acc %
Annualised Rate of Return +17.3%
Best Month +9.4 (Jan'13)
Worst Month -6.9 (Dec'18, Feb '20)
Average Month +1.4%
% Positive Months 70
TOP 10 HOLDINGS
- Microsoft
- Philip Morris
- Paypal
- Novo Nordisk
- Facebook
- Estée Lauder
- Intuit
- Stryker
- PepsiCo
Link: https://www.fundsmith.co.uk/fund-factsheet
Fundsmith also have the advantage of offering an sustainable version of the fund, based on an investment strategy that they were mandated on by Comic Relief.
The Fundsmith Sustainable Equity Fund is only recently available to retail investors and is relatively smaller, with 7-day liquidity in excess of 100 per cent.
For those considering an ISA or Junior ISA, it is worth taking a look at the Fundsmith Sustainable Equity Fund...
Link: https://www.fundsmith.co.uk/global/sef/fund-factsh...
For those watching markets, both Fundsmith and Fundsmith Sustainable Equity Fund are proving to be less volatile than equity trackers (FTSE 100, S&P 500, Dow Jones) in the recent market turmoil to maintain their relative outperformance since launch.
By contrast, Lindsell Train Global Equity Fund has been under-performing both Fundsmith funds over the past few months due to exposure in Japan (20.5%) and some poorly performing investments like Pearson plc. As a result, Lindsell Train Global Equity Fund is now under-performing its benchmark (MSCI World Index) over the past year...
For those invested in Lindsell Train Global Equity Fund (as I was) it is worth taking a close look at the absolute and relative performance over the past few months.
As they say, when the tide goes out...
Link: https://www.lindselltrain.com/~/media/Files/L/Lind...
PS: Please do you own research, etc...
For example, at Fundsmith, as of month ended Feb-2020:
Number of Holdings: 28
Average Market Cap of Investments: £113.3bn
KEY FACTS
Fund Size £17.8bn
Gross / Net Yield< 1.68% / 0.63%
2019 Portfolio Turnover Ratio -4.1%
7 Day Fund Liquidity> 64%
No. Holdings 28
Average Co. Founded 1925
Average Market Cap £113.3bn
Active Share as at 30.06.19" 92%
2019 Transaction Costs 0.01%
FUND PERFORMANCE ANALYSIS
To 28 Feb 2020, T Class Acc %
Annualised Rate of Return +17.3%
Best Month +9.4 (Jan'13)
Worst Month -6.9 (Dec'18, Feb '20)
Average Month +1.4%
% Positive Months 70
TOP 10 HOLDINGS
- Microsoft
- Philip Morris
- Paypal
- Novo Nordisk
- Estée Lauder
- Intuit
- Stryker
- PepsiCo
Link: https://www.fundsmith.co.uk/fund-factsheet
Fundsmith also have the advantage of offering an sustainable version of the fund, based on an investment strategy that they were mandated on by Comic Relief.
The Fundsmith Sustainable Equity Fund is only recently available to retail investors and is relatively smaller, with 7-day liquidity in excess of 100 per cent.
For those considering an ISA or Junior ISA, it is worth taking a look at the Fundsmith Sustainable Equity Fund...
Link: https://www.fundsmith.co.uk/global/sef/fund-factsh...
For those watching markets, both Fundsmith and Fundsmith Sustainable Equity Fund are proving to be less volatile than equity trackers (FTSE 100, S&P 500, Dow Jones) in the recent market turmoil to maintain their relative outperformance since launch.
By contrast, Lindsell Train Global Equity Fund has been under-performing both Fundsmith funds over the past few months due to exposure in Japan (20.5%) and some poorly performing investments like Pearson plc. As a result, Lindsell Train Global Equity Fund is now under-performing its benchmark (MSCI World Index) over the past year...
For those invested in Lindsell Train Global Equity Fund (as I was) it is worth taking a close look at the absolute and relative performance over the past few months.
As they say, when the tide goes out...
Link: https://www.lindselltrain.com/~/media/Files/L/Lind...
PS: Please do you own research, etc...
Guest said:
You can be well assured that Terry Smith is not concerned about Fundsmith fund liquidity and the ability to manage daily flows. The FT interview was an opportunity to point out a weakness in other managers’ funds...
For example, at Fundsmith, as of month ended Feb-2020:
Number of Holdings: 28
Average Market Cap of Investments: £113.3bn
KEY FACTS
Fund Size £17.8bn
Gross / Net Yield< 1.68% / 0.63%
2019 Portfolio Turnover Ratio -4.1%
7 Day Fund Liquidity> 64%
No. Holdings 28
Average Co. Founded 1925
Average Market Cap £113.3bn
Active Share as at 30.06.19" 92%
2019 Transaction Costs 0.01%
FUND PERFORMANCE ANALYSIS
To 28 Feb 2020, T Class Acc %
Annualised Rate of Return +17.3%
Best Month +9.4 (Jan'13)
Worst Month -6.9 (Dec'18, Feb '20)
Average Month +1.4%
% Positive Months 70
TOP 10 HOLDINGS
- Microsoft
- Philip Morris
- Paypal
- Novo Nordisk
- Facebook
- Estée Lauder
- Intuit
- Stryker
- PepsiCo
Link: https://www.fundsmith.co.uk/fund-factsheet
Fundsmith also have the advantage of offering an sustainable version of the fund, based on an investment strategy that they were mandated on by Comic Relief.
The Fundsmith Sustainable Equity Fund is only recently available to retail investors and is relatively smaller, with 7-day liquidity in excess of 100 per cent.
For those considering an ISA or Junior ISA, it is worth taking a look at the Fundsmith Sustainable Equity Fund...
Link: https://www.fundsmith.co.uk/global/sef/fund-factsh...
For those watching markets, both Fundsmith and Fundsmith Sustainable Equity Fund are proving to be less volatile than equity trackers (FTSE 100, S&P 500, Dow Jones) in the recent market turmoil to maintain their relative outperformance since launch.
By contrast, Lindsell Train Global Equity Fund has been under-performing both Fundsmith funds over the past few months due to exposure in Japan (20.5%) and some poorly performing investments like Pearson plc. As a result, Lindsell Train Global Equity Fund is now under-performing its benchmark (MSCI World Index) over the past year...
For those invested in Lindsell Train Global Equity Fund (as I was) it is worth taking a close look at the absolute and relative performance over the past few months.
As they say, when the tide goes out...
Link: https://www.lindselltrain.com/~/media/Files/L/Lind...
PS: Please do you own research, etc...
I do certainly do conduct my own research (with a large team behind me) and it is not the top ten holdings that are a liquidity concern, it is the bottom ten.For example, at Fundsmith, as of month ended Feb-2020:
Number of Holdings: 28
Average Market Cap of Investments: £113.3bn
KEY FACTS
Fund Size £17.8bn
Gross / Net Yield< 1.68% / 0.63%
2019 Portfolio Turnover Ratio -4.1%
7 Day Fund Liquidity> 64%
No. Holdings 28
Average Co. Founded 1925
Average Market Cap £113.3bn
Active Share as at 30.06.19" 92%
2019 Transaction Costs 0.01%
FUND PERFORMANCE ANALYSIS
To 28 Feb 2020, T Class Acc %
Annualised Rate of Return +17.3%
Best Month +9.4 (Jan'13)
Worst Month -6.9 (Dec'18, Feb '20)
Average Month +1.4%
% Positive Months 70
TOP 10 HOLDINGS
- Microsoft
- Philip Morris
- Paypal
- Novo Nordisk
- Estée Lauder
- Intuit
- Stryker
- PepsiCo
Link: https://www.fundsmith.co.uk/fund-factsheet
Fundsmith also have the advantage of offering an sustainable version of the fund, based on an investment strategy that they were mandated on by Comic Relief.
The Fundsmith Sustainable Equity Fund is only recently available to retail investors and is relatively smaller, with 7-day liquidity in excess of 100 per cent.
For those considering an ISA or Junior ISA, it is worth taking a look at the Fundsmith Sustainable Equity Fund...
Link: https://www.fundsmith.co.uk/global/sef/fund-factsh...
For those watching markets, both Fundsmith and Fundsmith Sustainable Equity Fund are proving to be less volatile than equity trackers (FTSE 100, S&P 500, Dow Jones) in the recent market turmoil to maintain their relative outperformance since launch.
By contrast, Lindsell Train Global Equity Fund has been under-performing both Fundsmith funds over the past few months due to exposure in Japan (20.5%) and some poorly performing investments like Pearson plc. As a result, Lindsell Train Global Equity Fund is now under-performing its benchmark (MSCI World Index) over the past year...
For those invested in Lindsell Train Global Equity Fund (as I was) it is worth taking a close look at the absolute and relative performance over the past few months.
As they say, when the tide goes out...
Link: https://www.lindselltrain.com/~/media/Files/L/Lind...
PS: Please do you own research, etc...
Please don't get me wrong, I think Fundsmith Equity is a great fund and far better than others.
It is just that it is actually not that good in the grand scheme of things. A S&P 500 index tracker would have delivered broadly the same results over most periods. PH Equity has delivered multiples of this (and not suffered the same falls).
Fundsmith Sustainable Equity also has (the last time I looked) a minimum £5m investment, so is hardly a retail fund (if this has changed then I put my hand up for being wrong).
The stocks and returns have also been virtually identical (I'll post something from my other computer that has a slightly out of date chart, that serves the point).
As already said, I am not knocking it and I think Terry is extremely competent and able. I just believe there is a huge amount of hype around him delivering similar returns to the markets in general.
JulianPH said:
Guest said:
You can be well assured that Terry Smith is not concerned about Fundsmith fund liquidity and the ability to manage daily flows. The FT interview was an opportunity to point out a weakness in other managers’ funds...
For example, at Fundsmith, as of month ended Feb-2020:
Number of Holdings: 28
Average Market Cap of Investments: £113.3bn
KEY FACTS
Fund Size £17.8bn
Gross / Net Yield< 1.68% / 0.63%
2019 Portfolio Turnover Ratio -4.1%
7 Day Fund Liquidity> 64%
No. Holdings 28
Average Co. Founded 1925
Average Market Cap £113.3bn
Active Share as at 30.06.19" 92%
2019 Transaction Costs 0.01%
FUND PERFORMANCE ANALYSIS
To 28 Feb 2020, T Class Acc %
Annualised Rate of Return +17.3%
Best Month +9.4 (Jan'13)
Worst Month -6.9 (Dec'18, Feb '20)
Average Month +1.4%
% Positive Months 70
TOP 10 HOLDINGS
- Microsoft
- Philip Morris
- Paypal
- Novo Nordisk
- Facebook
- Estée Lauder
- Intuit
- Stryker
- PepsiCo
Link: https://www.fundsmith.co.uk/fund-factsheet
Fundsmith also have the advantage of offering an sustainable version of the fund, based on an investment strategy that they were mandated on by Comic Relief.
The Fundsmith Sustainable Equity Fund is only recently available to retail investors and is relatively smaller, with 7-day liquidity in excess of 100 per cent.
For those considering an ISA or Junior ISA, it is worth taking a look at the Fundsmith Sustainable Equity Fund...
Link: https://www.fundsmith.co.uk/global/sef/fund-factsh...
For those watching markets, both Fundsmith and Fundsmith Sustainable Equity Fund are proving to be less volatile than equity trackers (FTSE 100, S&P 500, Dow Jones) in the recent market turmoil to maintain their relative outperformance since launch.
By contrast, Lindsell Train Global Equity Fund has been under-performing both Fundsmith funds over the past few months due to exposure in Japan (20.5%) and some poorly performing investments like Pearson plc. As a result, Lindsell Train Global Equity Fund is now under-performing its benchmark (MSCI World Index) over the past year...
For those invested in Lindsell Train Global Equity Fund (as I was) it is worth taking a close look at the absolute and relative performance over the past few months.
As they say, when the tide goes out...
Link: https://www.lindselltrain.com/~/media/Files/L/Lind...
PS: Please do you own research, etc...
I do certainly do conduct my own research (with a large team behind me) and it is not the top ten holdings that are a liquidity concern, it is the bottom ten.For example, at Fundsmith, as of month ended Feb-2020:
Number of Holdings: 28
Average Market Cap of Investments: £113.3bn
KEY FACTS
Fund Size £17.8bn
Gross / Net Yield< 1.68% / 0.63%
2019 Portfolio Turnover Ratio -4.1%
7 Day Fund Liquidity> 64%
No. Holdings 28
Average Co. Founded 1925
Average Market Cap £113.3bn
Active Share as at 30.06.19" 92%
2019 Transaction Costs 0.01%
FUND PERFORMANCE ANALYSIS
To 28 Feb 2020, T Class Acc %
Annualised Rate of Return +17.3%
Best Month +9.4 (Jan'13)
Worst Month -6.9 (Dec'18, Feb '20)
Average Month +1.4%
% Positive Months 70
TOP 10 HOLDINGS
- Microsoft
- Philip Morris
- Paypal
- Novo Nordisk
- Estée Lauder
- Intuit
- Stryker
- PepsiCo
Link: https://www.fundsmith.co.uk/fund-factsheet
Fundsmith also have the advantage of offering an sustainable version of the fund, based on an investment strategy that they were mandated on by Comic Relief.
The Fundsmith Sustainable Equity Fund is only recently available to retail investors and is relatively smaller, with 7-day liquidity in excess of 100 per cent.
For those considering an ISA or Junior ISA, it is worth taking a look at the Fundsmith Sustainable Equity Fund...
Link: https://www.fundsmith.co.uk/global/sef/fund-factsh...
For those watching markets, both Fundsmith and Fundsmith Sustainable Equity Fund are proving to be less volatile than equity trackers (FTSE 100, S&P 500, Dow Jones) in the recent market turmoil to maintain their relative outperformance since launch.
By contrast, Lindsell Train Global Equity Fund has been under-performing both Fundsmith funds over the past few months due to exposure in Japan (20.5%) and some poorly performing investments like Pearson plc. As a result, Lindsell Train Global Equity Fund is now under-performing its benchmark (MSCI World Index) over the past year...
For those invested in Lindsell Train Global Equity Fund (as I was) it is worth taking a close look at the absolute and relative performance over the past few months.
As they say, when the tide goes out...
Link: https://www.lindselltrain.com/~/media/Files/L/Lind...
PS: Please do you own research, etc...
Please don't get me wrong, I think Fundsmith Equity is a great fund and far better than others.
It is just that it is actually not that good in the grand scheme of things. A S&P 500 index tracker would have delivered broadly the same results over most periods. PH Equity has delivered multiples of this (and not suffered the same falls).
Fundsmith Sustainable Equity also has (the last time I looked) a minimum £5m investment, so is hardly a retail fund (if this has changed then I put my hand up for being wrong).
The stocks and returns have also been virtually identical (I'll post something from my other computer that has a slightly out of date chart, that serves the point).
As already said, I am not knocking it and I think Terry is extremely competent and able. I just believe there is a huge amount of hype around him delivering similar returns to the markets in general.
1) If you compare Fundsmith since it was founded in November 2011 to an S&P 500 ETF tracker, you will see that Fundsmith has returned +367% (based on latest price of 467p class I) compared to the S&P 500 growth of around +221% over the same period.
A comparison from Terry Smith’s 2019 letter to the owners of Fundsmith Equity Fund (see link below) shows that Fundsmith has achieved +364% growth since inception, compared to the MSCI World Index with +180% growth over the same period.
Link: https://www.fundsmith.co.uk/docs/default-source/an...
2) Fundsmith Sustainable Equity Fund was originally a minimum £5m investment, but is now available to retail investors (including ISA and Junior ISA) with a minimum £100 investment...
Link: https://www.hl.co.uk/funds/fund-discounts,-prices-...
Guest said:
JulianPH said:
Guest said:
You can be well assured that Terry Smith is not concerned about Fundsmith fund liquidity and the ability to manage daily flows. The FT interview was an opportunity to point out a weakness in other managers’ funds...
For example, at Fundsmith, as of month ended Feb-2020:
Number of Holdings: 28
Average Market Cap of Investments: £113.3bn
KEY FACTS
Fund Size £17.8bn
Gross / Net Yield< 1.68% / 0.63%
2019 Portfolio Turnover Ratio -4.1%
7 Day Fund Liquidity> 64%
No. Holdings 28
Average Co. Founded 1925
Average Market Cap £113.3bn
Active Share as at 30.06.19" 92%
2019 Transaction Costs 0.01%
FUND PERFORMANCE ANALYSIS
To 28 Feb 2020, T Class Acc %
Annualised Rate of Return +17.3%
Best Month +9.4 (Jan'13)
Worst Month -6.9 (Dec'18, Feb '20)
Average Month +1.4%
% Positive Months 70
TOP 10 HOLDINGS
- Microsoft
- Philip Morris
- Paypal
- Novo Nordisk
- Facebook
- Estée Lauder
- Intuit
- Stryker
- PepsiCo
Link: https://www.fundsmith.co.uk/fund-factsheet
Fundsmith also have the advantage of offering an sustainable version of the fund, based on an investment strategy that they were mandated on by Comic Relief.
The Fundsmith Sustainable Equity Fund is only recently available to retail investors and is relatively smaller, with 7-day liquidity in excess of 100 per cent.
For those considering an ISA or Junior ISA, it is worth taking a look at the Fundsmith Sustainable Equity Fund...
Link: https://www.fundsmith.co.uk/global/sef/fund-factsh...
For those watching markets, both Fundsmith and Fundsmith Sustainable Equity Fund are proving to be less volatile than equity trackers (FTSE 100, S&P 500, Dow Jones) in the recent market turmoil to maintain their relative outperformance since launch.
By contrast, Lindsell Train Global Equity Fund has been under-performing both Fundsmith funds over the past few months due to exposure in Japan (20.5%) and some poorly performing investments like Pearson plc. As a result, Lindsell Train Global Equity Fund is now under-performing its benchmark (MSCI World Index) over the past year...
For those invested in Lindsell Train Global Equity Fund (as I was) it is worth taking a close look at the absolute and relative performance over the past few months.
As they say, when the tide goes out...
Link: https://www.lindselltrain.com/~/media/Files/L/Lind...
PS: Please do you own research, etc...
I do certainly do conduct my own research (with a large team behind me) and it is not the top ten holdings that are a liquidity concern, it is the bottom ten.For example, at Fundsmith, as of month ended Feb-2020:
Number of Holdings: 28
Average Market Cap of Investments: £113.3bn
KEY FACTS
Fund Size £17.8bn
Gross / Net Yield< 1.68% / 0.63%
2019 Portfolio Turnover Ratio -4.1%
7 Day Fund Liquidity> 64%
No. Holdings 28
Average Co. Founded 1925
Average Market Cap £113.3bn
Active Share as at 30.06.19" 92%
2019 Transaction Costs 0.01%
FUND PERFORMANCE ANALYSIS
To 28 Feb 2020, T Class Acc %
Annualised Rate of Return +17.3%
Best Month +9.4 (Jan'13)
Worst Month -6.9 (Dec'18, Feb '20)
Average Month +1.4%
% Positive Months 70
TOP 10 HOLDINGS
- Microsoft
- Philip Morris
- Paypal
- Novo Nordisk
- Estée Lauder
- Intuit
- Stryker
- PepsiCo
Link: https://www.fundsmith.co.uk/fund-factsheet
Fundsmith also have the advantage of offering an sustainable version of the fund, based on an investment strategy that they were mandated on by Comic Relief.
The Fundsmith Sustainable Equity Fund is only recently available to retail investors and is relatively smaller, with 7-day liquidity in excess of 100 per cent.
For those considering an ISA or Junior ISA, it is worth taking a look at the Fundsmith Sustainable Equity Fund...
Link: https://www.fundsmith.co.uk/global/sef/fund-factsh...
For those watching markets, both Fundsmith and Fundsmith Sustainable Equity Fund are proving to be less volatile than equity trackers (FTSE 100, S&P 500, Dow Jones) in the recent market turmoil to maintain their relative outperformance since launch.
By contrast, Lindsell Train Global Equity Fund has been under-performing both Fundsmith funds over the past few months due to exposure in Japan (20.5%) and some poorly performing investments like Pearson plc. As a result, Lindsell Train Global Equity Fund is now under-performing its benchmark (MSCI World Index) over the past year...
For those invested in Lindsell Train Global Equity Fund (as I was) it is worth taking a close look at the absolute and relative performance over the past few months.
As they say, when the tide goes out...
Link: https://www.lindselltrain.com/~/media/Files/L/Lind...
PS: Please do you own research, etc...
Please don't get me wrong, I think Fundsmith Equity is a great fund and far better than others.
It is just that it is actually not that good in the grand scheme of things. A S&P 500 index tracker would have delivered broadly the same results over most periods. PH Equity has delivered multiples of this (and not suffered the same falls).
Fundsmith Sustainable Equity also has (the last time I looked) a minimum £5m investment, so is hardly a retail fund (if this has changed then I put my hand up for being wrong).
The stocks and returns have also been virtually identical (I'll post something from my other computer that has a slightly out of date chart, that serves the point).
As already said, I am not knocking it and I think Terry is extremely competent and able. I just believe there is a huge amount of hype around him delivering similar returns to the markets in general.
1) If you compare Fundsmith since it was founded in November 2011 to an S&P 500 ETF tracker, you will see that Fundsmith has returned +367% (based on latest price of 467p class I) compared to the S&P 500 growth of around +221% over the same period.
A comparison from Terry Smith’s 2019 letter to the owners of Fundsmith Equity Fund (see link below) shows that Fundsmith has achieved +364% growth since inception, compared to the MSCI World Index with +180% growth over the same period.
Link: https://www.fundsmith.co.uk/docs/default-source/an...
2) Fundsmith Sustainable Equity Fund was originally a minimum £5m investment, but is now available to retail investors (including ISA and Junior ISA) with a minimum £100 investment...
Link: https://www.hl.co.uk/funds/fund-discounts,-prices-...
Guest said:
A couple points to follow up on Fundsmith...
1) If you compare Fundsmith since it was founded in November 2011 to an S&P 500 ETF tracker, you will see that Fundsmith has returned +367% (based on latest price of 467p class I) compared to the S&P 500 growth of around +221% over the same period.
A comparison from Terry Smith’s 2019 letter to the owners of Fundsmith Equity Fund (see link below) shows that Fundsmith has achieved +364% growth since inception, compared to the MSCI World Index with +180% growth over the same period.
Link: https://www.fundsmith.co.uk/docs/default-source/an...
2) Fundsmith Sustainable Equity Fund was originally a minimum £5m investment, but is now available to retail investors (including ISA and Junior ISA) with a minimum £100 investment...
Link: https://www.hl.co.uk/funds/fund-discounts,-prices-...
Thanks for clarifying on the new retail share class of the sustainable fund.1) If you compare Fundsmith since it was founded in November 2011 to an S&P 500 ETF tracker, you will see that Fundsmith has returned +367% (based on latest price of 467p class I) compared to the S&P 500 growth of around +221% over the same period.
A comparison from Terry Smith’s 2019 letter to the owners of Fundsmith Equity Fund (see link below) shows that Fundsmith has achieved +364% growth since inception, compared to the MSCI World Index with +180% growth over the same period.
Link: https://www.fundsmith.co.uk/docs/default-source/an...
2) Fundsmith Sustainable Equity Fund was originally a minimum £5m investment, but is now available to retail investors (including ISA and Junior ISA) with a minimum £100 investment...
Link: https://www.hl.co.uk/funds/fund-discounts,-prices-...
You make some great points that I would completely agree with (and which is why I said I thought it was a great fund and much better than many others).
My focus, though, was on shorter time periods, which was when the majority of investors bought into the fund.
The gap between its performance and an that of its benchmark tracker has consistently narrowed up until the point it has under performed its own benchmark.
5 years:
3 years:
1 year:
6 months:
3 months:
So whilst the fund has certainly performed very well over the first half of its life, that situation has been steadily reversing to tracker returns and now below tracker returns.
JulianPH said:
2Btoo said:
PH Equity?
https://www.pistonheads.com/gassing/topic.asp?h=0&f=206&t=1786977&i=2180A similar, but more concentrated approach with significantly better performance.
Only just opened to retail investors on November 18th 2019.
A couple of questions on PH Equity if I may...
1) Please can you provide a link to the latest PH Equity factsheet?
2) When do expect PH Equity to be available via Hargreaves Lansdown?
It sounds like worth considering for the fund watchlist.
Thanks
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