Fundsmith FEET (Emerging Equities) closing

[2Btoo]

Chaps,

I've noticed in the news that the Fundsmith Emerging Equities Trust (FEET) is closing. It bumped up 10% yesterday (presumably because of this), but Terry Smith said at it's launch that it was the fund that would make him more money than any other fund. This Is Money link here.

It's up and has made a profit but not much.

Others here will hold FEET. Does anyone have anything more to help me understand what's going on?


Thanks!

[thekingisdead]

I believe Sir Terrance had decided he can’t deliver enough ‘alpha’ to his shareholders in that market sector and has decided the best thing is liquidate and return shareholder capital.

There’s probably more to it but it’s magnanimous to return money when I’m sure with his reputation he could have carried on creaming in the Fee’s

[Mr Whippy]

Is this EM equities?

Probably better buying USD at the moment aren’t you?

[2Btoo]

thekingisdead said:

I believe Sir Terrance had decided he can’t deliver enough ‘alpha’ to his shareholders in that market sector and has decided the best thing is liquidate and return shareholder capital.

There’s probably more to it but it’s magnanimous to return money when I’m sure with his reputation he could have carried on creaming in the Fee’s

Good username ....

That's the line that's being pushed in the press, for sure. And I agree, it deems decent of TS to close the fund rather than just keep it limping along and collecting the fees. It will mean crystallisation of gains without necessarily wanting to take them at this point but I guess I'll navigate that one.

Mr Whippy said:

Is this EM equities?

Probably better buying USD at the moment aren’t you?

EM equities - yes.

Buying USD then the STLG:USD is at historic lows .... that doesn't sound sensible to me, but I may have missed something.

[Derek Chevalier]

thekingisdead said:

I believe Sir Terrance had decided he can’t deliver enough ‘alpha’ to his shareholders in that market sector and has decided the best thing is liquidate and return shareholder capital.

There’s probably more to it but it’s magnanimous to return money when I’m sure with his reputation he could have carried on creaming in the Fee’s

Very important to differentiate genuine alpha from factor exposures.

https://www.aqr.com/Insights/Research/White-Papers...