This thread is more about Fundsmith’s main fund (“Fundsmith Equity Fund”) I believe, however one of their other products (Fundsmith Emerging Equities Trust, or FEET) also has been mentioned a few times in this thread, so I post here, instead of starting a separate FEET thread.
FEET uses the same strategy as the Fundsmith Equity Fund but focussing on companies with majority of their operations in, or revenue derived from, Developing Economies, providing direct exposure to the rise of the consumer classes in those countries.
It nicely also avoids China (I dislike China market as an investment), so I bought some FEET some time ago.
Last week Tuesday (when everything else was red), the price seemed to jump up 10%, strange, but couldn’t find anything about it.
Now I found this, which is quite irritating and also not terribly understable (to me) - FEET will be be placed under voluntary liquidation.
https://www.feetplc.co.uk/news/feet-news/?id=ry5z09w
YTD -12% (in CHF) = one of the better performing holdings for 2022.
EM overall has not seen terribly good performance last 5-10 years, so it hasn’t been an easy sector.
EM of all markets needs the longest to develop positively IMO, and ditching it after 8 years seems premature.
Why the 10% jump, is that the discount to NAV that it was trading at? Yes, I suppose so → “As at 31 Aug 2022, Price 1215.00p NAV 1421.56p Discount -14.5%”
Keep until the liquidation proceeds are distributed (November 2022?), or sell now?
And now to figure out whether to re-invest in something like VFEM or simply VT?
Edit: this YTD of -12% (in CHF, as of 18.9.2022) that I quoted is deceptive, since at the liquidation announcement (14.9) it jumped about 11%. So the performance, at pre-announcement, of YTD of about -23% should be used for comparison, for example compare with VWRL & VFEM which are at about -16% at this time.