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Dan L
Posted: 04 July 2021 19:42:09(UTC)
#338

Joined: 29/04/2018(UTC)
Posts: 804
Bulldog Drummond;175714 wrote:
ANDREW FOSTER;175713 wrote:
Bulldog Drummond;175710 wrote:


There are some things that I think we can all agree on about FS:

*Over the past 5 years it has tailed off, still doing okay but pretty much the same as a comparable tracker in the same space



Nope... we don't agree. Unless you can say specifically which 'comparable' tracker your are comparing to.

Can you name your comparison?




I think that I have mentioned a few times that the Global 100 is in a similar space, but if you don't like that try the S&P. Comparisons to the FTSE 100 or World would obviously be ridiculous.


The Global 100 is a good comparison. Why not a MCSI or FTSE World fund too?
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Bulldog Drummond
Posted: 04 July 2021 19:49:04(UTC)
#289

Joined: 03/10/2017(UTC)
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smg8;175715 wrote:
Bulldog Drummond;175710 wrote:
....... given the rather average performance in recent years......


I think where my opinion differs to yours (aside from which index as we clearly have covered off way too many times that I feel a global index is fair for a global fund and you feel a US index is fair for a global fund) is we must have a different interpretation of average;

If 36/309 and 50/374 is "average" may I ask what would constitute a "good" performance and would be a "poor" one?



My point is about trackers, not about the IA sector, where I agree that comparative performance has been perfectly adequate on the whole in recent years. I remain of the opinion that the Global 100 is a perfectly fair tracker comparison as the universe there is the same as FS. But the S&P is also not unreasonable as, like FS, it is focused on US mega-caps.

The question going forward is whether FS can repeat its early years' performance, given its narrow base and expensive-looking holdings.

Perhaps we should adjourn this one for 12 months and see how things look then?
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Andrew Richardson on 05/07/2021(UTC)
Bulldog Drummond
Posted: 04 July 2021 19:51:03(UTC)
#343

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Dan L;175716 wrote:


The Global 100 is a good comparison. Why not a MCSI or FTSE World fund too?


The World index has many thousands of companies but the FS screening only allows a couple of hundred mega-caps, so I don't see the World index as appropriate.
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Tim D on 04/07/2021(UTC)
SimonHughes
Posted: 04 July 2021 19:54:53(UTC)
#339

Joined: 07/08/2018(UTC)
Posts: 1,267

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Dan L;175716 wrote:
Bulldog Drummond;175714 wrote:
ANDREW FOSTER;175713 wrote:
Bulldog Drummond;175710 wrote:


There are some things that I think we can all agree on about FS:

*Over the past 5 years it has tailed off, still doing okay but pretty much the same as a comparable tracker in the same space



Nope... we don't agree. Unless you can say specifically which 'comparable' tracker your are comparing to.

Can you name your comparison?




I think that I have mentioned a few times that the Global 100 is in a similar space, but if you don't like that try the S&P. Comparisons to the FTSE 100 or World would obviously be ridiculous.


The Global 100 is a good comparison. Why not a MCSI or FTSE World fund too?


Here are the numbers for Fundsmith against some trackers. Cells highlighted in green are for the top return in that time period. Nothing in it for six and 12 months but over three and especially five years, Fundsmith has been the better investment.
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3 users thanked SimonHughes for this post.
Zach F on 04/07/2021(UTC), ANDREW FOSTER on 04/07/2021(UTC), Keith Cobby on 05/07/2021(UTC)
Bulldog Drummond
Posted: 04 July 2021 19:58:31(UTC)
#340

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SimonHughes;175722 wrote:
Nothing in it for six and 12 months but over three and especially five years, Fundsmith has been the better investment.


I have not said that it was worse than a tracker, only that it was pretty much the same.
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SimonHughes
Posted: 04 July 2021 20:06:20(UTC)
#341

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Bulldog Drummond;175723 wrote:
SimonHughes;175722 wrote:
Nothing in it for six and 12 months but over three and especially five years, Fundsmith has been the better investment.


I have not said that it was worse than a tracker, only that it was pretty much the same.


VUSA is the closest but you would still be down £13k on a five year investment of £100k compared to FS. I aggree that this is "pretty close" but for the global trackers, VWRL is down £38k and SWDA £34k. I would not really consider that to be "pretty much the same".
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Bulldog Drummond
Posted: 04 July 2021 20:14:53(UTC)
#342

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SimonHughes;175725 wrote:


VUSA is the closest but you would still be down £13k on a five year investment of £100k compared to FS. I aggree that this is "pretty close" but for the global trackers, VWRL is down £38k and SWDA £34k. I would not really consider that to be "pretty much the same".


For the reasons I noted above, I think that VWRL or a global tracker would be a strange comparison. VWRL has a benchmark of 4,000 stocks, and FS a universe of maybe 200.

One then has my question about how things proceed from here. Will US-oriented, quality, mega-cap perform? Maybe. But it looks to me like an expensive and very narrow niche.
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Dan L
Posted: 04 July 2021 21:15:30(UTC)
#347

Joined: 29/04/2018(UTC)
Posts: 804
Bulldog Drummond;175721 wrote:
Dan L;175716 wrote:


The Global 100 is a good comparison. Why not a MCSI or FTSE World fund too?


The World index has many thousands of companies but the FS screening only allows a couple of hundred mega-caps, so I don't see the World index as appropriate.


Well I am happy since Fundsmith is by its nature designed to be a defensive equity fund which comes into its own during crashes and downturns. The fact its beating the Global 100 by around 13% over 5 years during a strong period for equities its just a bonus I guess.
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3 users thanked Dan L for this post.
Harland Kearney on 04/07/2021(UTC), Jesse M on 04/07/2021(UTC), Joe Soap on 05/07/2021(UTC)
Flashman65
Posted: 05 July 2021 07:54:51(UTC)
#273

Joined: 16/02/2018(UTC)
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Joe Soap;175516 wrote:
Spartacus;175515 wrote:
Paul Greer;174775 wrote:

In my humble opinion, anyone who sells Fundsmith needs their head examined.


Yield on Fundsmith is around 1.3%, if you're seeking an income you'll have to sell down your holdings.

In that case, it's absolutely obvious you need to look elsewhere unless you are prepared to sell down units to generate a pseudo income stream.



This is exactly what I do to generate an income stream in my parent's ISAs to fund their nursing home fees. It really isn't a difficult concept and I don't understand the reluctance by some to sell shares?
Terry says don't invest for income - go for total return and sell some shares. Simple.
I have runs this for a few years and now do the same for us as we start to retire.
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Joe Soap on 05/07/2021(UTC)
Joe Soap
Posted: 05 July 2021 08:00:14(UTC)
#344

Joined: 24/01/2010(UTC)
Posts: 2,157
Bulldog Drummond;175721 wrote:
Dan L;175716 wrote:


The Global 100 is a good comparison. Why not a MCSI or FTSE World fund too?


The World index has many thousands of companies but the FS screening only allows a couple of hundred mega-caps, so I don't see the World index as appropriate.

Nearer to 80 companies worldwide, I believe, actually.
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