FUNDSMITH EMERGING EQUITIES TRUST PLC Factsheet
Price & NAV Data
As at 30 Sep 2022 | |
Price | 1340.00p |
NAV | 1389.96p |
Premium (+) / Discount (-) | -3.6% |
OCF to 30.06.22 | 1.3% |
Standing Data
As at 30 Sep 2022 | |
Portfolio Manager post 31.5.19 | Michael O'Brien |
Fund Type | Investment Trust |
EPIC Code/Ticker | FEET |
Inception Date | 25th June 2014 |
Performance Fee | None |
AMC pre/post 31.5.19 | 1.25% / 1.0% |
Base Currency | GBP |
Sponsor & Broker | Investec Bank |
Legal Adviser | Travers Smith LLP |
Auditor | Deloitte LLP |
Administrator | Northern Trust |
Registrar | Link Asset Services |
Depositary | Northern Trust |
Co. Secretary | Frostrow Capital LLP |
Dealing | LSE Main Market |
AIC Sector | Emerging Markets |
Key Facts
As at 30 Sep 2022 by Listing | |
Est Portfolio Yield^ | 1.6% |
No. Holdings | 34 |
Median Company Founded | 1985 |
Median Market Cap | £6.5bn |
Gearing policy | None |
No. Shares in Issue | 26,288,283 |
Market Capitalisation | £352m |
2021 Transaction Costs | 0.06% |
2021 PTR* | 38.0% |
Geographical Split
As at 30 Sep 2022 by Listing | % |
India | 45.9 |
US | 16.0 |
Hong Kong | 8.5 |
China | 5.7 |
Brazil | 3.5 |
Other Countries | 11.4 |
Cash incl. Money Market a/c's | 9.1 |
Sector Split
As at 30 Sep 2022 by NAV - GICS® Categories | % |
Consumer Staples | 42.7 |
Technology | 13.1 |
Healthcare | 9.4 |
Communication Services | 9.2 |
Materials | 6.0 |
Consumer Discretionary | 5.6 |
Industrials | 2.8 |
Financials | 2.0 |
Cash incl. Money Market a/c's | 9.1 |
Security Identification Codes
Name | Code |
SEDOL | BLSNND1 |
ISIN | GB00BLSNND18 |
EPIC | FEET |
IMPORTANT NOTE
The Board of Fundsmith Emerging Equities Trust plc ('the Company') announced on 14th September 2022 that, following notification from Fundsmith LLP (the investment manager and AIFM of the Company) that it intends to give notice under the investment management agreement, proposals will be put forward for the Company to be placed into voluntary liquidation, with the cash proceeds arising on realisation of the portfolio returned to shareholders. Until the appointment of the liquidator FEET shares remain tradeable on the London Stock Exchange.
Further information can be found here; https://www.feetplc.co.uk/news/feet-news/?id=ry5z09w. Should you require further guidance on what this means please contact a suitably qualified financial adviser.
Fund Aim
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 those countries.
The Company maintains a portfolio diversified by issuer concentration and the Company's portfolio will normally comprise 25 to 40 investments.
The Investment Manager intends to find companies which make their money by a large number of everyday, repeat, relatively predictable transactions. Its strategy is to not overpay when buying the shares of such companies and then do as little dealing as possible in order to minimise the expenses of the Company, allowing the investee companies' returns to compound for Shareholders with minimum interference.
The Investment Manager will avoid the financial sector and heavily cyclical sectors such as construction and manufacturing, utilities, resources and transport, and will instead focus almost exclusively on consumer stocks and in any event only on stocks in companies which will benefit from the rise of the consuming class in the Developing Economies.
The companies in which the Company will seek to invest have relatively predictable revenues and low capital intensity, and correspondingly high returns on capital. The targeted companies will also deliver most or all of their profits in cash. They will have defensible and strong market positions, typically derived from a combination of brands, trademarks and distribution systems or networks. The Investment Manager believes this combination will deliver compound growth in shareholder value over the long term.
The Investment Manager is also cognisant of the additional risks of investing in Developing Economies as opposed to developed economies, both in terms of the countries in which the companies operate and the standard of corporate governance within the companies themselves. The Investment Manager will take into account the degree of economic freedom, particularly the measure derived by the Heritage Foundation, of the country in which the companies are listed and/or operate in assessing the risks of any particular opportunity.
Past performance is not a guide to future performance.
Performance Overview, % Return
Sep | 2022 to | 2021 | 2020 | 2019 | 2018 | 2017 | Inception to | Annualised to | |||
2022 | 30.09.22 | 30.09.22 | 30.09.22 | ||||||||
FEET NAV1 | -2.2 | -8.1 | +3.8 | +20 | .7 | -0 | .5 | -3.0 | +21.2 | +40.4 | +4.2 |
FEET Share Price | +10.3 | -1.8 | -3.4 | +29.1 | -7.4 | -9.4 | +24.5 | +34.9 | +3.7 | ||
Equities2 | -7.9 | -11.6 | -1.4 | +14.4 | +13.9 | -9.3 | +25.3 | +54.5 | +5.4 | ||
UK Bonds3 | -8.9 | -18.8 | -4.5 | +4.6 | +3.8 | +1.2 | +1.4 | -0.2 | -0.0 | ||
Cash4 | +0.1 | +0.7 | +0.1 | +0 | .3 | +0 | .8 | +0.7 | +0.4 | +4.4 | +0.5 |
1Source: Bloomberg, starting NAV 995.5, net of fees. 2MSCI Emerging & Frontier Markets Index, £ Net, source: www.msci.com.
3Bloomberg/Barclays Bond Indices UK Govt 5-10yr, source: Bloomberg. 4 £ Interest Rate, source: Bloomberg.
Portfolio Comment for September 2022
We exited our positions in Eastern Tobacco and Integrated Diagnostics over concerns on the potential devaluation of the Egyptian currency. The top 5 contributors in the month were Wal-Mart de Mexico, Foshan Haitian, Marico, Hindustan Unilever and Metropolis Healthcare. The top 5 detractors were Tencent, NetEase, TSMC, Vitasoy and Info Edge.
Top 10 holdings | Our Values | |||
Asian Paints | No Fees For Performance | |||
Foshan Haitian | No Upfront Fees | |||
Avenue Supermarts | No Nonsense | |||
Mercadolibre | No Debt or Derivatives | |||
Nestlé India | No Shorting | |||
Hindustan Unilever | No Market Timing | |||
Marico | No | Index Hugging | ||
Info Edge | No Trading | |||
WNS | No Hedging | |||
Hypera | Fundsmith knows | |||
The OCF (Ongoing Charges Figure) is the total expenses paid by the fund (excluding bank overdraft interest), annualised, against its average net asset value. The OCF will fluctuate as the average net assets and costs change. The OCF is updated following the publication of accounts for the periods ending 30th June and 31st December.
Cash in the Sector and Geographic split represents current assets, of which cash is typically the largest part, less any current liabilities.
- Estimated Portfolio Yield is an estimate of the dividends received as a percentage of the market capitalisation. Where the OCF exceeds the amount no dividends will be distributable to shareholders.
- The PTR (Portfolio Turnover Rate) is a measure of the fund's trading activity, and has been calculated by taking the total share purchases and sales less total creations and liquidations divided by the average net asset value of the fund.
- 2022 Fundsmith LLP. All rights reserved. Fundsmith LLP is authorised and regulated by the Financial Conduct Authority. It is entered on the Financial Conduct Authority's register under registered number 523102. Fundsmith LLP is a limited liability partnership registered in England and Wales with number OC354233. Its registered office address is 33 Cavendish Square, London, W1G 0PW.
Factsheet
Performance chart
24/06/2014 - 03/10/2022
Cumulative performance (%) Performance data as at 30 September 2022
Key | Instrument | YTD | 1M | 3M | 6M | 1Y | 3Y | 5Y | From inception | From inception annualised |
A | Fundsmith Emerging Equities Trust (NAV) | -8.1 | -2.2 | 10.0 | 3.1 | -10.5 | 7.3 | 23.8 | 40.4 | 4.2 |
B | Fundsmith Emerging Equities Trust (Price) | -1.8 | 10.3 | 24.1 | 13.1 | -8.8 | 16.6 | 20.2 | 34.9 | 3.7 |
C | Sector: Emerging Markets | -5.3 | -3.0 | 4.3 | 0.1 | -7.4 | 7.9 | 11.0 | 33.5 | 3.6 |
MSCI Emerging & Frontier Markets Index is the exclusive property of MSCI Inc. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or final products. This report is not approved, reviewed or produced by MSCI. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor's and "GICS®" is a service mark of MSCI and Standard & Poor's.
Fundsmith LLP ("Fundsmith") is authorised and regulated by the Financial Conduct Authority and only acts for the funds to whom it provides regulated investment management and transaction arrangement services. Fundsmith does not act for or advise potential investors in connection with acquiring shares in Fundsmith Emerging Equities Trust plc and will not be responsible to potential investors for providing them with protections afforded to clients of Fundsmith. Prospective investors are strongly advised to take their own legal, investment and tax advice from independent suitably qualified advisers. The value of investments may go up as well as down. Past performance is not a guide to future performance.
- 2022 Fundsmith LLP. All rights reserved. Fundsmith LLP is authorised and regulated by the Financial Conduct Authority. It is entered on the Financial Conduct Authority's register under registered number 523102. Fundsmith LLP is a limited liability partnership registered in England and Wales with number OC354233. Its registered office address is 33 Cavendish Square, London, W1G 0PW.
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Disclaimer
Fundsmith Emerging Equities Trust plc published this content on 05 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 October 2022 08:41:09 UTC.
