Fundsmith FEET (emerging markets)?

[zcacogp]

Chaps,

I have a chunk of money with Fundsmith - Terry Smith's outfit. I notice that he is planning to start a new fund which does the same thing (consumer non-durables, buy-and-hold with low turnover strategy) in emerging markets. The website is here:

http://feetplc.co.uk/

I know very, very little about financial markets and suchlike, but what are anyone else's views on this? I'm inclined to put a bit into it to see what happens. Anyone else tempted?


Oli.

[nyt]

I'm in the same situation.

I think the key consideration at the moment is how volatile exchange rates are. For example, the existing Fundsmith fund is more or less tracking the GBP/USD rate at the moment (because much of its investments are in the US).
Obviously all 'emerging' investment has to be abroad, so if you think that sterling will continue to rise then effectively investing your money abroad won't yield great returns (at least initially).

Personally, I think I'll hold off for a while (or go with Woodford's new vehicle.

If you do put money into Fundsmith, it's best not to go direct. Go through a broker like Barclays that will wrap it as part of a self-select ISA. Fundsmith aren't allow you to invest directly as an ISA.

Needless to say I have no connection with Fundsmith or qualification to give financial advice.

[nyt]

Rise in GBP and drop in stock markets today meant a ~2p fall in fund smith.

[ringram]

Im considering FEET

Emerging markets are down vs developed over the last year or so, the pound is stronger etc.

So they offer better value now and long term..
Also outside of a wrapper Terry has said he doesnt intend to pay dividends so you are looking perhaps at capital gains instead.
Which obviously are taxed more lightly and you get ~10K PA allowance etc. An option for some perhaps.

Also if things continue to dip as per present, then they are even more discounted

[jeff m2]

ringram said:

Im considering FEET

Emerging markets are down vs developed over the last year or so, the pound is stronger etc.

So they offer better value now and long term..
Also outside of a wrapper Terry has said he doesnt intend to pay dividends so you are looking perhaps at capital gains instead.
Which obviously are taxed more lightly and you get ~10K PA allowance etc. An option for some perhaps.

Also if things continue to dip as per present, then they are even more discounted

Yep, Emerging Markets at sitting at lower P/Es than UK or the US and with a strongish Pound I would say this is a wise move, esp if it diversifies your current holdings.

[Jockman]

If Scotland were to gain Independence, would it be included in emerging markets ??

[Simpo Two]

Jockman said:

If Scotland were to gain Independence, would it be included in emerging markets ??

Porridge futures.

[jeff m2]

Jockman said:

If Scotland were to gain Independence, would it be included in emerging markets ??

Emerging no...
Frontier perhaps

[Jockman]

jeff m2 said:

Emerging no...
Frontier perhaps

Oi....leave our football team out of this !!!

[zcacogp]

Well, it launched and seems to have done OK on the first day of trading.

I went in pre-launch and, on the basis of nothing more than one day's trading, I'm glad I did!


Oli.

[ringram]

Up near 8% but with no assets except cash afaik.
So lots of confidence in the team. We will see how that goes.

At least market pricing is under pressure at present.

I went in on the IPO too.

[zcacogp]

Won't be anything but cash for a while; he was planning to see how much they get and then go prospecting with it, and suggested it would take 3-6 months at a minimum to spend it all. While yesterday was encouraging, it'll be a number of years before we know whether it's a success.


Oli.