A thread dedicated to all things Terry Smith, who is perhaps the UKās best money manager.
Iāve held his flagship fund in my Sipp for about a decade. While a little more pedestrian returns-wise, it has provided a good counter-balance to my more growth-focused Baillie Gifford funds.
Fundsmith Equity Fund
The Fundsmith Equity Fund, which is relatively concentrated with 29 holdings, has around Ā£20bn under management, putting it on a par with SMT size-wise.
It has delivered a return of nearly 450% since inception against a sector average of about 167%.
The fund focuses on global large cap equities and is relatively defensive with allocations to consumer staple companies such as ULVR, RB. and PM.
While itās an open-ended investment company, which Trading 212 cannot yet offer, it can easily be replicated with pies. Hereās the top 10:
Where are you in this video? On the 1 million invest area?
Interesting their view about the global economy, just before the Corona Crash on the markets (until the 23th March floor), the global shutdowns starting on March and the worst GDP numbers on most of the worldās countries.
Wishing that Trading 212 adds soon this type of funds.
Unfortunately, I think itāll be many years before T212ās able to offer this type of fund. Iād be surprised if itās even on the current roadmap.
For those wishing to replicate Fundsmith with pies, there are two missing ingredients: Coloplast (CLPBY) and Kone (KNYJY), which make up about 7%. Any chance those two can be made fractional when you get a minute please @David@Martin@PeterA@Rumen?
I already have access to some free fund supermarkets, but only UCITS complaint funds and not UK-domiciled (not anymore).
Since the Brexit referendum, some asset management companies converted their UCITS complaint GB funds to LU/IE funds, but there are UK funds not accessible to the Continental European investors, specially the non-UCITS complaint funds.
By using T212, we could access British financial instruments, a plus for Trading 212 vs. other brokers (mostly non-UK based).
A good selling point for T212 is the access to the British financial markets (financial instruments). An example, is the Investment Trusts already present, like the Baillie Giffordās Investment Trusts.
It could help attract more investors on T212, not only the Continental Europeans who want British financial instruments but also British investors who want open-ended investment funds (OEIC).
We can but hope. Iād imagine funds will become more of a priority when T212 launches a Sipp. Many would be reticent to transfer without access to Fundsmith, Lindsell, Vanguard all-cap etc.
In Fundsmith news, the latest factsheet reveals the fund has added household goods company Church & Dwight and sold its stake in assurance services firm Intertek. Usually, thereās little turnover but Smith recently purchased luxury goods maker LVMH as well.
As an aside, Iāve always liked the āour valuesā part of the fundās factsheet, makes me think of Ronsealās āDoes exactly what it says on the tinā advertising slogan:
For anyone interested, Iāve created a Fundsmith pie using the latest semi-annual report, which was published recently. Iāll update it every six months when full details are published. Iāll be selling the OEIC and buying this pie to swerve the 1% ongoing fee once T212 releases a Sipp.
Two of the stocks ā Coloplast and Kone ā cannot be held in an Isa although Iād imagine itās due to T212ās blanket ban on OTC stocks rather than actual eligibility as I think the underlying companies both trade on HMRC-recognised exchanges.
A new holding was added in July but the name has yet to be revealed as far as I can see.
I wasnāt aware of this feature to be honest. I know turnoverās usually relatively low aside from a bit of chopping and changing over the past few months.
I was glad to see SGE, ITRK and RB receive the boot. I wonder what the mystery new stock is, anyone got a best guess? Itāll be something with a good ROCE, low debt and a wide moat.
I thought Iād do it every six months in line with the annual/semi-annual reports to make life a little easier ā back when I was doing the Ark pies, it was a royal pain updating them all the time.
Yes, once the T212 Sippās up and running, Iāll do a detailed analysis over time to determine whether itās worth doing or not.
Tell me about it, I feel like half of them are dreamed up by the marketing department! Itās one of the many reasons I like investment trusts: relatively limited choice compared to ETFs etc.
Theyāre playing the Robin Hood crowd extremely well Iād say. Itād be interesting to do a gap analysis between the funds to ascertain the amount of double up.
Fundsmith has completed the purchase of a position in AMZN. The monthly factsheet also reveals the fund has sold IHG and started buying another mystery position.
