Annual Report
for the year ended 31 December 2021
Fundsmith Emerging Equities Trust plc
2021 December 31 ended year the for Report Annual plc Trust Equities Emerging Fundsmith
Contents
1
1
Strategic Report
- Company Summary
- Financial Highlights
5 Chairman's Statement
- Investment Objective and Policy
- Investment Portfolio
- Investment Manager's Review
- Investment Philosophy
- Business Review
3
Financial Statements
63 Independent Auditor's Report
- Statement of Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity
- Statement of Cash Flows
- Notes to the Financial Statements
2
Governance
38 Board of Directors
- Corporate Governance Report
- Report of the Directors
- Statement of Directors' Responsibilities
- Audit Committee Report
- Directors' Remuneration Report
- Directors' Remuneration Policy Report
4
Further Information
- Shareholder Information
- Alternative Investment Fund Managers Directive Disclosures
96 Glossary of Terms and Alternative
Performance Measures 99 How to Invest
- Notice of Annual General Meeting
- Explanatory Notes to the Resolutions
- Company Information
Fundsmith Emerging Equities Trust plc Annual Report for the year ended 31 December 2021
2 Company Summary
Strategic Report
Fundsmith Emerging Equities Trust plc ("FEET" or the "Company") aims to provide shareholders with an attractive return by investing in a portfolio of shares issued by listed or traded companies which have the majority of their operations in, or revenue derived from, Developing Economies* and which provide direct exposure to the rise of the consumer classes in those countries or to the broader social and/or economic development of these countries.
*See Fundsmith's Investment Philosophy beginning on page 29 for further information
Company Summary
The Company
The Company is an investment trust and its shares are listed on the premium segment of the Official List and traded on the main market of the London Stock Exchange. The Company is a member of the Association of Investment Companies.
Total assets less total liabilities as at 31 December 2021 were £397.7 million (2020: £388.5 million) and the market capitalisation was £358.8 million (2020: £376.5 million).
Management
The Company employs Fundsmith LLP ('Fundsmith') as Investment Manager and Alternative Investment Fund Manager ('AIFM'). Further details of the terms of these appointments are provided on page 32.
Performance is measured against the MSCI Emerging and Frontier Markets Index measured on a net total return, sterling adjusted basis.
Website
www.feetplc.co.uk
Capital Structure
The Company's capital structure is composed of Ordinary Shares. Further details are given in note 13 to the financial statements on page 85.
ISA Status
The Company's shares are eligible for Individual Savings Accounts ('ISAs') and for Junior ISAs.
Retail Investors advised by IFAs
The Company currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers ('IFAs') in the UK to ordinary retail investors in accordance with the Financial Conduct Authority ('FCA') rules in relation to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCA's restrictions which apply to non- mainstream investment products because they are shares in an investment trust.
Further details of the Company's investment policy are set out in the Strategic Report on page 9.
Fundsmith Emerging Equities Trust plc Annual Report for the year ended 31 December 2021
Financial Highlights
Performance Summary
3
As at | As at | |
31 December 2021 | 31 December 2020 | |
Net asset value per share - basic | 1,512.9p | 1,460.2p |
Net asset value per share - diluted | 1,510.9p | 1,460.1p |
Share price | 1,365.0p | 1,415.0p |
Discount of the share price to the net asset | ||
value per share* | 9.8% | 3.1% |
Ongoing charges ratio* | 1.3% | 1.3% |
For the year ended | For the year ended | |
31 December 2021 | 31 December 2020 | |
Net asset value per share (total return)* | +3.8% | +20.7% |
Share price (total return)* | -3.4% | +29.1% |
Index (total return)1 | -1.4% | +14.4% |
*Alternative Performance Measure (see Glossary beginning on page 96)
1MSCI Emerging and Frontier Markets Index (measured on a net total return, sterling adjusted basis)
Please refer to the Glossary beginning on page 96 for definitions of these terms and the basis of their calculation. Performance over one year
% | ||||||||||||||||||||||||||||
115 | ||||||||||||||||||||||||||||
110 | ||||||||||||||||||||||||||||
105 | ||||||||||||||||||||||||||||
100 | ||||||||||||||||||||||||||||
95 | ||||||||||||||||||||||||||||
90 | ||||||||||||||||||||||||||||
85 | ||||||||||||||||||||||||||||
80 | M | A | M | J | A | S | O | Nov- | D | |||||||||||||||||||
D | J | F | J | |||||||||||||||||||||||||
e | ||||||||||||||||||||||||||||
ec- | a | e | p | u | u | u | p-2 | ct-2 | e | |||||||||||||||||||
n- | b- | ar- | r-2 | ay- | n- | l-2 | g- | c- | ||||||||||||||||||||
2 | 2 | 2 | 2 | 1 | 2 | 2 | 1 | 2 | 1 | 1 | 2 | 2 | ||||||||||||||||
0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
NAV | Share Price | MSCI Emerging + Frontier Markets Index | ||
Source: MSCI/Bloomberg
Figures rebased to 100 as at 31 December 2020
Fundsmith Emerging Equities Trust plc Annual Report for the year ended 31 December 2021
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Fundsmith Emerging Equities Trust plc published this content on 24 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2022 16:01:02 UTC.