Fundsmith Unveils an Investment Trust Targeting Emerging Market Consumers (FT)
London based Fundsmith’s fund manager Terry Smith is launching the Fundsmith Emerging Markets Trust which is expected to have the London stock market symbol “Feet” and will invest in a portfolio of between 35 to 55 companies that are either based in or generate revenue from developing economies.
More specifically, the Fundsmith Emerging Markets Trust will target capital growth over the long term by investing exclusively in consumer-focused stocks using exactly the same strategy as the existing Fundsmith Equity fund with Terry intending to look for companies that turn most of their accounting profits into cash flow plus have strong, defendable positions in their markets.
Terry also intends for the trust to be less invested in China and more invested in countries like South Africa and India where he sees “great growth opportunities.”
The Fundsmith Emerging Markets Trust is not without company as peers, benchmarks or competitors include Mark Mobius’ Templeton Emerging Markets Inv Trust plc (LON: TEM), JPMorgan Emerging Markets Investment Trust (LON: JMGS) and the Genesis Emerging Markets Fund Limited (LON: GSS).
The trust will also come with an annual management charge of 1.25% and an estimated ongoing charges figure of 1.75% in the first year albeit Terry expects the OCF to come down over time.
To read the whole article, Fundsmith unveils emerging markets trust, go to the website of the Financial Times.
- The Emerging Market Sand Trap: Financial Reports, Currency & Other Risks (Epoch Times)
- Emerging Market Acronyms Like “Fragile Five” are Misleading and Unhelpful (SCMP)
- Emerging Market Companies & Governments Binge on US Dollar Debt (WSJ)
- Macro Forum Insights and Perspectives (Actis)
- “Fragile Five” Emerging Markets No Longer That “Fragile” (AP)
- New Fragile Five Facing a Forex Crisis: Argentina, Brazil, South Africa, Ukraine & Venezuela (Institutional Investor)
- Volkswagen Hit By Falling Emerging Market Sales (FT)
- What Went Wrong for Terry Smith’s Trust? (FT Adviser)
- Emerging Markets Election Timetable 2014 (Aberdeen)
- Key Findings: Credit Suisse Emerging Markets Consumer Survey
- The State of Big Emerging Markets on One Giant Map (BI)
- Election Results in Some Fragile Five Emerging Markets Calm Investors (Reuters)
- Global Emerging Markets: Country Allocation Review, H1 2021 (Federated Hermes)
- Best Consumer Stocks for Emerging Market Investors (Morningstar)
- China Still Leads the BRICs in the Global Competitiveness Report
Leave a Reply