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New Simon T
Posted: 05 July 2021 08:16:55(UTC)
#345

Joined: 19/07/2018(UTC)
Posts: 1,239
Joe Soap;175745 wrote:
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.

30 (I counted the three different L'Oreal as one) as at 31/12/20 according to the annual report (they have to detail all of them on the SICAV version)
https://www.fundsmith.eu...at-31-december-2020.pdf
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Joe Soap
Posted: 05 July 2021 08:21:16(UTC)
#346

Joined: 24/01/2010(UTC)
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New Simon T;175747 wrote:
Joe Soap;175745 wrote:
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.

30 (I counted the three different L'Oreal as one) as at 31/12/20 according to the annual report (they have to detail all of them on the SICAV version)
https://www.fundsmith.eu...at-31-december-2020.pdf

Not quite. I refer to Smith's "universe of investable companies". About 80 across the world. 30 is the number of those FS is presently invested in? Not the same thing. Thanks.
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New Simon T on 05/07/2021(UTC)
Keith Cobby
Posted: 05 July 2021 08:37:32(UTC)
#349

Joined: 07/03/2012(UTC)
Posts: 5,061

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However you compare it, FS has done very well. Personally, I would use a global all cap tracker as my sole benchmark, the minimum performance measure. I tip my hat to those who bought it at launch and have ignored all the noise!
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Joe Soap on 05/07/2021(UTC), bédé on 05/07/2021(UTC)
bédé
Posted: 05 July 2021 09:09:32(UTC)
#337

Joined: 26/09/2018(UTC)
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Bulldog Drummond;175714 wrote:
Comparisons to the FTSE 100 or World would obviously be ridiculous.
FTSE 100, I agree. World, not. One only needs one benchmark, world. How one chooses which "world" is a detail (or coin spin).

(I am aware that "comparison" is different to (?from) "benchmark". Comparisons you try to see how equal things are, a benchmark is for beating.

I "look at" FTSE World. Different again from "bench-mark", more a back-stop, in the rowing sense. (Keith said it: minimum peformance measure.). What I really watch is Trustnet's "My Portfolio". Anything below is for the chop, anything above is for adding-to. Consistent with diversity and intuition. PB is my goal. FS is currently more-or-less coincident with my Pf, so at <10%, has a stabilising place.
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ANDREW FOSTER on 05/07/2021(UTC)
Frank Marquis
Posted: 05 July 2021 11:21:44(UTC)
#350

Joined: 14/12/2012(UTC)
Posts: 104
Global 100 is not a valid benchmark as OEIC concentration rules don't allow an active fund to have anything like the concentration that fund has.

MSCI World quality is the most comparable benchmark, Fundsmith has comfortably outperformed it.
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Dan L
Posted: 05 July 2021 11:39:40(UTC)
#351

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Frank Marquis;175778 wrote:
Global 100 is not a valid benchmark as OEIC concentration rules don't allow an active fund to have anything like the concentration that fund has.

MSCI World quality is the most comparable benchmark, Fundsmith has comfortably outperformed it.


It isn't especially unusual for an active fund to have around 10% in single companies. The Global 100 has that in two, Apple and Microsoft. Lindsell Train UK has 50% of its allocation in its top 5 holdings
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Frank Marquis on 05/07/2021(UTC), Bulldog Drummond on 05/07/2021(UTC)
Frank Marquis
Posted: 05 July 2021 12:23:43(UTC)
#352

Joined: 14/12/2012(UTC)
Posts: 104
Dan L;175781 wrote:
Frank Marquis;175778 wrote:
Global 100 is not a valid benchmark as OEIC concentration rules don't allow an active fund to have anything like the concentration that fund has.

MSCI World quality is the most comparable benchmark, Fundsmith has comfortably outperformed it.


It isn't especially unusual for an active fund to have around 10% in single companies. The Global 100 has that in two, Apple and Microsoft. Lindsell Train UK has 50% of its allocation in its top 5 holdings


Noted I'll dial that comment back to the fact that OEICs aren't allowed over 10% in a position therefore can't compare that to a benchmark which does have that.
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Dan L on 05/07/2021(UTC)
bédé
Posted: 05 July 2021 12:30:09(UTC)
#290

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Bulldog Drummond;175717 wrote:
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?

I second that.

16 pages for this thread gets a bit repetitive, and the questions will only be answered in the future.
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Frank Marquis
Posted: 05 July 2021 16:23:15(UTC)
#291

Joined: 14/12/2012(UTC)
Posts: 104
bédé;175797 wrote:
Bulldog Drummond;175717 wrote:
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?

I second that.

16 pages for this thread gets a bit repetitive, and the questions will only be answered in the future.


That's obviously true for all investments - it's kind of the point of this forum.

What is tiresome is a constant derailment of all Fundsmith threads by:
a) the fee is too high
b) the performance isn't as good as x (or y or then z) index
c) straight up trolling
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6 users thanked Frank Marquis for this post.
philip gosling on 05/07/2021(UTC), Joe Soap on 05/07/2021(UTC), malc1111 on 05/07/2021(UTC), SimonHughes on 05/07/2021(UTC), Harland Kearney on 05/07/2021(UTC), Guest on 06/07/2021(UTC)
bédé
Posted: 05 July 2021 16:50:24(UTC)
#292

Joined: 26/09/2018(UTC)
Posts: 7,895

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Frank Marquis;175828 wrote:
What is tiresome is a constant derailment of all Fundsmith threads by ...
But 16 pages? And 4 months??
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