SEPTEMBER 2020 FUND FACTSHEET


Price & NAV Data

As at 30 Sep 2020
Price1132.50p
NAV1309.85p
Premium (+) / Discount (-)-13.5%
OCF to 30.06.201.3%

Standing Data

As at 30 Sep 2020
Portfolio Manager post 31.5.19Michael O'Brien
Fund TypeInvestment Trust
EPIC Code/TickerFEET
Launch Date25th Jun-14
Performance FeeNone
AMC pre/post 31.5.191.25% / 1.0%
Base CurrencyGBP
Sponsor & BrokerInvestec Bank
Legal AdviserTravers Smith LLP
AuditorDeloitte
AdministratorNorthern Trust
RegistrarLink Asset Services
DepositaryNorthern Trust
Co. SecretaryFrostrow Capital LLP
DealingLSE Main Market
AIC SectorEmerging Markets

Key Facts

As at 30 Sep 2020 by Listing
LTM Portfolio Yield^1.6%
No. Holdings38
Median Company Founded1978
Median Market Cap£4.3bn
GearingNone
No. Shares in Issue26,640,056
Market Capitalisation £302m
2019 Transaction Costs0.06%
2019 PTR*28.0%

Geographic Split

As at 30 Sep 2020 by Listing %
India42.8
Hong Kong11.7
US9.5
China8.0
Vietnam3.1
Other Countries22.8
Cash incl. Money Market a/c's2.1

Sector Split

As at 30 Sep 2020 by NAV - GICS® Categories%
Consumer Staples56.0
Healthcare15.1
Consumer Discretionary8.6
Communication Services5.8
Materials4.0
Industrials3.2
Technology2.8
Financials2.3
Cash incl. Money Market a/c's2.1

Security Identification Codes

NameCode
SEDOLBLSNND1
ISINGB00BLSNND18
EPICFEET

Fund Aim

The Company's investment policy is to invest in companies which, in the opinion of the Investment Manager, 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.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.

Approximately a third of the companies in which the Company may invest are quoted subsidiaries or franchisees of the multinational companies which may be invested in by the Investment Manager's existing fund, Fundsmith Equity Fund. This means the Investment Manager is well placed to conduct due diligence and assess the corporate governance of these companies.

Performance Overview, % Return

Sep 20202020 to 30.09.2020192018201720162015Inception to 30.09.20 Annualised to 30.09.20
FEET NAV1+1.2+8.3-0.5-3.0+21.2+12.0-7.0+32.1+4.5
FEET Share Price+0.7+3.3-7.4-9.4+24.5+10.5-10.9+13.8+2.1
Equities2-0.3+1.1+13.9-9.3+25.3+32.4-10.0+56.8+7.4
UK Bonds3+0.6+4.4+3.8+1.2+1.4+6.5+1.0+28.4+4.1
Cash4+0.0+0.3+0.8+0.7+0.4+0.5+0.6+3.6+0.6

1Source: Bloomberg, starting NAV 995.5.  2MSCI Emerging & Frontier Markets Index, £ Net, source: www.msci.com.
3Bloomberg/Barclays Bond Indices UK Govt 5-10yr, source: Bloomberg.  43 Month £ LIBOR Interest Rate source: Bloomberg.

​

Portfolio Comment for September 2020

There were no outright sales or purchases of holdings made in the month. The top 5 contributors in the month were Vitasoy, Vietnam Dairy, Info Edge, Godrej and Integrated Diagnostics. The top 5 detractors were Foshan Haitian, Mercadolibre, XP, Hypera and Philippine Seven.

Top 10 Holdings

  • Foshan Haitian
  • Mercadolibre
  • Vitasoy
  • Info Edge
  • Asian Paints
  • Nestlé India
  • Metropolis Healthcare
  • Hindustan Unilever
  • Havells
  • Marico

 

Our Values

  • No Fees For Performance
  • No Upfront Fees
  • No Nonsense 
  • No Debt or Derivatives
  • No Shorting
  • No Market Timing
  • No Index Hugging
  • No Trading
  • No Hedging
 
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.
^ LTM Gross Yield reflects the historic dividend income received by the fund in the preceding 12 months before the deduction of all expenses including management fees. Net Yield is Gross Yield less the deduction of all expenses including management fees i.e Gross Yield less the OCF. 
* The PTR (Portfolio Turnover Ratio) has been calculated in accordance with the methodology laid down by the FCA. This compares the total share purchases and sales less total shares issues and redeemed with the average net asset value of the fund.

Monthly Performance Table, % Total Return, T Class, Accumulation Shares

JanFebMarAprMayJunJulAugSepOctNovDec
20139.44.43.70.93.5-1.82.5-4.1-0.2+4.6
20121.63.41.2-0.3-0.41.93.6-0.2-0.2-0.52.9-1.4
2011-3.20.42.71.43.90.3-2.1-2.2-0.24.8-2.35.0
20102.04.1

Dividend Payments, payable on 28th February and 31st August

NameDirectDirectAdvisedAdvisedInstitutionalInstitutional
2013123456
2012123456
2011234567
2010234567

© 2020 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.



















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.