No small Feet for man – Terry Smith to launch Emerging Market trust


#1

Fundsmith Emerging markets is hoping to raise up to £250 million to replicate his successful developed world strategy in the emerging markets. The tru
[See the full post at: No small Feet for man – Terry Smith to launch Emerging Market trust]


#2

Terry Smith is a legend, and I have a holding in his equity fund buy I am more than a wee bit surprised at the AMC here. 1.25% is bloody big.

What’s that all about? This is before dealing charges etc so the on going fee will be much higher. I’d like to know how they can defend this because with a fee like that I’m no gonny invest.


#3

I’m with you there @AlexBarr that’s too high. Why have they set it at such a high level?

I think WhichInvestmentTrust.com should ask that question of Mr Smith.


#4

By the way that link just takes you to an error page pals.


#5

At a time when fees are coming under such scrutiny it is very, very surprising to see a new launch from someone who is supposed to be a bit of a maverick who shoots down those in the wrong.

It would be an interesting task to compare FEET to TEMIT (Templeton).


#6

We approached Fundsmith earlier for a response to your comments about the high fees. They responded to us very quickly and I have updated the article above.


#7

I think it is a price I am definately willing to pay.

The reason for this is I think that if you can invest in the right stocks, and I think they are basic industry stocks then you can make a lot of money.

I am very sure this will do very well and that’s why I’m investing from the outset for me , for my wife and my 2 year old daughter.


#8

I agree with @Amir I am gonna pay the price also.

It is expensive though and no arguing about the sector can change my opinion on that.

If this trust becomes bigger there is no way they will be able to defend a 1.25% AMC because I’ll be at every AGM challenging them and encouraging them to switch to cheaper tea bags and Lidl branded coffee :wink:


#9

I think it is a high management fee too but they can get away with it for two reasons, first the rest of the sector are charging the same or more as the response from Fundsmith said, and the second reason is for me investing with them is a little bit less risky.

I know you boys like your thrills but I just like to invest a little bit wisely and make some money over time.

I haven’t applied for this but me and hubby are probably going to do so this Weekend.


#10

The charges are high across the GEM sector be it with unit trusts or investment trusts.

Seeing how well his other fund has done I am very tempted by this. The reason it appeals to em is with Fundsmith you’ve got a reasonably safe pair of hands, over the long term emerging markets will be great but ONLY if you choose the right stocks, which is hard to do in fast growing economies because it’s hard to tell who will be the winners.

I already have a holding in Templeton which is managed quite differently, I think of this as perhaps being complementary, maybe even a bit safer than the Templeton trust.


#11

Do you see Templeton Emerging Markets has reduced its fees by 0.1%. I know, such a small amount but I wonder if they were thinking of these guys when they did it.

I don’t think a defence of we’re expensive because everyone else is expensive is good enough really and I just think 1.25% it too high a price to pay for fund. Nuff said.


#12

They are dear, emerging markets investment trusts but they argue it’s coz of the larger teams they need to scour the area which might be true.

I think it’s a lovely launch and I’m subscribing to it. You’d be daft not to.