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Smithson: new Fundsmith Investment Trust to launch

Closed-end funds and OEICs
simoan
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Re: Smithson: new Fundsmith Investment Trust to launch

#175972

Postby simoan » October 24th, 2018, 12:49 pm

Noiseboy wrote:994p now, Must have bought something!

Well, that is the idea isn't it?? Did you expect Terry Smith to try and time the market? They made the schedule for deploying funds blatantly clear in an RNS:

...As a result of the increase in the target number of Ordinary Shares to be issued under the Initial Issue, the Company's Investment Manager, Fundsmith LLP has confirmed that the expected time for deployment of the Issue Proceeds has been extended. Assuming that Issue Proceeds of £600 million are received, the Investment Manager now expects to be able to deploy 92 per cent. of the Issue Proceeds within 7 business days (with the balance being fully invested within 22 business days of Admission).

The IPO proceeds ended up even higher in the end, but I'd still expect 92% of £600m to be invested in 7 days at least. I look forward to the daily update on the NAV. I'm really jealous you guys have so much time on your hands :-)

All the best, SI

Dod101
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Re: Smithson: new Fundsmith Investment Trust to launch

#175976

Postby Dod101 » October 24th, 2018, 12:58 pm

Before this all gets a bit unpleasant why do those reporting on the daily price movements not just forget it and take a look say in a year's time? I am only half not serious because any new fund will take time to settle and fluctuations at the moment can have as much to do with stags and others consolidating their positions as with the underlying investments. Anyway, like any new investment, there are dealing costs if nothing else to be taken into account.

Dod

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Re: Smithson: new Fundsmith Investment Trust to launch

#175995

Postby Lootman » October 24th, 2018, 3:02 pm

simoan wrote:The IPO proceeds ended up even higher in the end, but I'd still expect 92% of £600m to be invested in 7 days at least.

Not impossible, but ambitious. If the target shares were in the S&P 500 or the FTSE-100, then the liquidity would be there, but for smaller issues I'm not so sure. There may quite simply not be the stock available to buy in large amounts. And to telegraph to the market which shares you are buying, how much you are buying and how quickly you are buying them could cause arbs to bid up stock against them.

Now, that said, these guys are smart and, as I indicated in an earlier post, there are things that Smith and sons could have done in advance to mitigate this risk. And again, the falls in the market over the last couple of weeks have made their task easier. But setting yourself a one week target to invest nearly a billion in small issues is a bold goal.

I'm also a little surprised that they ended up increasing the size of the fund so much. That ensured that there was no buoyant after-market, and could mean that some investors ended up with more shares than they really wanted, having asked for more than they thought they would get. But then fund managers can be greedy and, with a fee of 1% of assets, why not take it all and collect a cool £8,000,000 a year in fees?

simoan
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Re: Smithson: new Fundsmith Investment Trust to launch

#176073

Postby simoan » October 24th, 2018, 10:32 pm

Lootman wrote:
simoan wrote:The IPO proceeds ended up even higher in the end, but I'd still expect 92% of £600m to be invested in 7 days at least.

Not impossible, but ambitious. If the target shares were in the S&P 500 or the FTSE-100, then the liquidity would be there, but for smaller issues I'm not so sure. There may quite simply not be the stock available to buy in large amounts. And to telegraph to the market which shares you are buying, how much you are buying and how quickly you are buying them could cause arbs to bid up stock against them.

I don't see a problem at all in this regard. They said they were targeting up to 25 shares with an average market cap of £7bn. So liquidity should not be a problem, particularly given the number of willing sellers currently. Investing £35m in a £7bn company is only a 0.5% holding, which wouldn't even trigger a holding RNS for UK listed companies. So they should easily be able to fly under radars if they are smart, which they are.

All the best, Si

ADrunkenMarcus
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Re: Smithson: new Fundsmith Investment Trust to launch

#181470

Postby ADrunkenMarcus » November 19th, 2018, 9:03 pm

I'm looking forward to finding out some of their holdings - we should know early January 2019, I think.

Best wishes

Mark.

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Re: Smithson: new Fundsmith Investment Trust to launch

#181472

Postby doug2500 » November 19th, 2018, 9:07 pm

I think we'll know in the first few days of december.

It says on the website that the first factsheet will be available for november. Fundsmith tend to produce these within a day or two of the month end, and it will probably name the top ten and possibly name some others. I think they're 95%+ invested so they may even name them all?

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Re: Smithson: new Fundsmith Investment Trust to launch

#181474

Postby Lootman » November 19th, 2018, 9:13 pm

ADrunkenMarcus wrote:I'm looking forward to finding out some of their holdings - we should know early January 2019, I think.

Let's hope that they took their time investing their windfall, given that markets have been falling ever since the launch date

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Re: Smithson: new Fundsmith Investment Trust to launch

#181478

Postby ADrunkenMarcus » November 19th, 2018, 9:18 pm

That would be even better. I hope we at least get the top ten!

Best wishes

Mark.

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Re: Smithson: new Fundsmith Investment Trust to launch

#181551

Postby Walrus » November 20th, 2018, 8:33 am

Lootman wrote:
ADrunkenMarcus wrote:I'm looking forward to finding out some of their holdings - we should know early January 2019, I think.

Let's hope that they took their time investing their windfall, given that markets have been falling ever since the launch date


Based on yesterday's NAV we are down 1.4 percent. I'm not sure what the expected cost would be to build a position in the midsize market? I guess to execute so quickly we'd expect some level of additional cost.

ADrunkenMarcus
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Re: Smithson: new Fundsmith Investment Trust to launch

#181611

Postby ADrunkenMarcus » November 20th, 2018, 11:15 am

It is a one-off cost, too.

Certainly there'll be further charges incurred on an ongoing basis, but the big spadework of getting the whole portfolio purchased is a one-off event.

Best wishes

Mark.

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Re: Smithson: new Fundsmith Investment Trust to launch

#181720

Postby Backache » November 20th, 2018, 4:14 pm

Lootman wrote:
ADrunkenMarcus wrote:I'm looking forward to finding out some of their holdings - we should know early January 2019, I think.

Let's hope that they took their time investing their windfall, given that markets have been falling ever since the launch date


Smith has always maintained that he can't time the markets and I seem to remember they said they would be quickly fully invested so I wouldn't hold out to much hope, though they took a fair bit of time to be fully invested in their emerging trust I think but that was probably in less liquid markets.

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Re: Smithson: new Fundsmith Investment Trust to launch

#182490

Postby flyer61 » November 23rd, 2018, 11:01 am

Has Smithson bought a stake in PZ Cussons? There was an RNS mid Nov by a company called Heronbridge Investment Management who have acquired a 5 per cent stake on behalf of?

I have kept some tinder dry in the hope of buying directly the top 10 holdings. Given the asset value has dropped nearly 5 per cent since listing I might just get TS’s best ideas cheaper than he has.....well I can live in hope.

simoan
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Re: Smithson: new Fundsmith Investment Trust to launch

#182494

Postby simoan » November 23rd, 2018, 11:24 am

flyer61 wrote:Has Smithson bought a stake in PZ Cussons? There was an RNS mid Nov by a company called Heronbridge Investment Management who have acquired a 5 per cent stake on behalf of?

Why do you think this has anything to do with Smithson? I think the clue is in the name on the RNS... PZ Cussons looks too small and fundamentally unsound as an investment to ever interest a vehicle run by Terry Smith. Put it this way, if they have bought it I will be dumping my Smithson shares.

flyer61 wrote:I have kept some tinder dry in the hope of buying directly the top 10 holdings. Given the asset value has dropped nearly 5 per cent since listing I might just get TS’s best ideas cheaper than he has.....well I can live in hope.

I don't understand why you'd want to do this rather than just buy shares in Smithson? Do you really think you can do better by copying? It makes no sense to me. On the contrary I've made very good money on perfectly sound companies that Fundsmith sold e.g. JM Smucker and Proctor & Gamble. Terry Smith and his cohorts are no different to anyone else - they don't always get it right.

All the best, Si

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Re: Smithson: new Fundsmith Investment Trust to launch

#183037

Postby flyer61 » November 26th, 2018, 2:39 pm

Thanks Si,

I agree with your sentiments. Smucker got the chop but I kept Nestle. Your right, he doesn’t always call it perfectly as subsequently Nestle have done very well for me. If Smithson comes back to par or a discount I will be purchasing just as I have done with FEET. That being said I will be buying his ideas individually and if I can get them at a discount to what he paid that’ll do me.

Good luck to all!

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Re: Smithson: new Fundsmith Investment Trust to launch

#183044

Postby Dod101 » November 26th, 2018, 4:05 pm

Slightly off topic but PZCussons was a very good investment for a very long time, and I keep thinking I should buy Nestle, but it does fit in with Smithson!

Dod

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Re: Smithson: new Fundsmith Investment Trust to launch

#183051

Postby ADrunkenMarcus » November 26th, 2018, 4:46 pm

I guess Nestle is too big for Smithson.

Best wishes

Mark.

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Re: Smithson: new Fundsmith Investment Trust to launch

#184515

Postby Backache » December 3rd, 2018, 3:55 pm

For those interested the first fact sheet is up, they are almost fully invested(97.4%) there is a somewhat larger geographic spread than the main fund though 47% is USA and there are less consumer staples and a bit more IT than the main fund.

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Re: Smithson: new Fundsmith Investment Trust to launch

#184528

Postby monabri » December 3rd, 2018, 4:51 pm


simoan
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Re: Smithson: new Fundsmith Investment Trust to launch

#184530

Postby simoan » December 3rd, 2018, 4:59 pm

monabri wrote:https://www.smithson.co.uk/fund-factsheet

Blimey! Equifax and Rightmove in the top 10. Some Domino's too. Big Ballsy calls. Not surprised by Halma though.

Interesting, Si

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Re: Smithson: new Fundsmith Investment Trust to launch

#184563

Postby Walrus » December 3rd, 2018, 7:57 pm

simoan wrote:
monabri wrote:https://www.smithson.co.uk/fund-factsheet

Blimey! Equifax and Rightmove in the top 10. Some Domino's too. Big Ballsy calls. Not surprised by Halma though.

Interesting, Si


If I'm being honest with myself this portfolio is not what I expected. None of it is stuff I hold elsewhere. Going to have a think about this one and do some research, am actually wondering if im better off buying into a trust at a discount as these do indeed look punchy to me.


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