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Robin
Posted: 05 February 2022 13:20:17(UTC)
#1181

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Bulldog Drummond;207599 wrote:
Robin;207556 wrote:
I remain unsure why L&G (actively picked) Index 100 is being compared to FS with overweight to Apple and financials/oils etc (if I'm right). And BD, without a whiff of Schadenfreude, it is fair to say BG has been slapped about a bit in the last month just has FS. We all have winners and losers, it is what makes up a portfolio.
.

I think that "active" for the Global 100 would be too strong a description. It's an S&P Index, albeit one which is tweaked so that it is not simply the biggest 100 by market cap. As far as I know, there's no one in S&P making active decisions about what goes into it. You are quite correct about many BG growth funds (including some of mine) taking a whacking, but the difference, I think, is that no one has ever promoted BG stuff as defensive or a core holding, whereas there has been a general feeling that a huge allocation to FS would always be a safe harbour as you could safely pay any amount for quality.



Maybe - comments around here help on this...

https://moneyforums.city...-buying.aspx#post198318

However, I'm unsure that 1. L&G Global 100 to FS, is comparing like for like and 2, that FS is having as bad a time as made out...
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Harland Kearney on 05/02/2022(UTC)
Ben's dad
Posted: 05 February 2022 14:21:41(UTC)
#1183

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The S&P Global 100 index is decided by committee.
See https://www.spglobal.com...logy-sp-global-1200.pdf
From their docs

S&P Global 100
Constituent Selection. Constituent selection is at the discretion of the Index Committee. Companies
included in the underlying index are screened for global exposure, sector representation, liquidity, and
size. Stocks with relatively larger size and higher liquidity are preferred over others. In addition,
companies must meet the following requirements:
• Global Exposure. Companies must have global exposure to be eligible for the index.
Companies are considered global in nature if both the following conditions are met:
o More than 30% of their revenues are generated outside of the domicile region.
1
o More than 30% of their assets are located outside of the domicile region.
In addition to the above conditions, revenue exposure in all three “primary” regions (North
America, Europe, and Asia/Pacific) must be represented.
• Sector Classification. Sector balance, as measured by a comparison of each GICS sector’s
weight in the index relative to its weight in the S&P Global 1200 is also considered in the
selection of companies.
• Market Capitalization. Companies considered for addition to the index must have a minimum
FMC of US$ 5 billion.
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Robin on 05/02/2022(UTC), Bulldog Drummond on 05/02/2022(UTC), Tim D on 05/02/2022(UTC), Jesse M on 05/02/2022(UTC)
Bulldog Drummond
Posted: 05 February 2022 15:38:11(UTC)
#1184

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Interesting, thanks, I think that I would still hesitate to describe that as "active". On passive comparables for FS, there has been endless discussion on this, and I think that someone dug out a global quality ETF as a benchmark and from memory FS was under-performing it.
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Tim D on 05/02/2022(UTC), Robin on 05/02/2022(UTC), Ben's dad on 05/02/2022(UTC)
Tim D
Posted: 05 February 2022 16:09:00(UTC)
#1185

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Bulldog Drummond;207630 wrote:
Interesting, thanks, I think that I would still hesitate to describe that as "active".


I agree. If the "100"'s constituents were being picked with the goal of outperforming some index (market cap, or some smart-beta "factor") then I might call it "active" (just that the stock-picking has been outsourced). But the description just sounds like they're picking mega-caps with an eye to assembling a reasonably representative selection of global players without skewing sector weights. Which doesn't sound that much different from what passive managers using an "optimised sampling" approach to the index they're tracking do... e.g the MSCI ACWI IMI index has 9186 companies in it but the IMID ETF tracking it only bothers holding 1810 of them. And if "stocks are stocks" 100 of them is probably still more than enough so long as you pick a reasonably diverse selection.

Bulldog Drummond;207630 wrote:
On passive comparables for FS, there has been endless discussion on this, and I think that someone dug out a global quality ETF as a benchmark and from memory FS was under-performing it.


As I remember it, that was an illusion caused by Trustnet mixing up GBP and USD pricing for it. (Very unusual for Trustnet to have bad data for something, but it seemed to have happened in that case.)
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Robin on 05/02/2022(UTC), Ben's dad on 05/02/2022(UTC), Joe Soap on 05/02/2022(UTC), Jesse M on 07/02/2022(UTC)
Robin
Posted: 05 February 2022 16:21:15(UTC)
#1186

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Thanks both, food for thought.
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Joe Soap
Posted: 07 February 2022 12:19:44(UTC)
#1187

Joined: 24/01/2010(UTC)
Posts: 2,157
Fundsmith might just dodge dropping back below 600p. As expected, it's down this morning.
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D Bergman
Posted: 07 February 2022 13:10:27(UTC)
#1188

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Joe Soap;207921 wrote:
Fundsmith might just dodge dropping back below 600p. As expected, it's down this morning.


How can you see that?
FS's price is set about 14:00 every working day, so the latest price I can see is Friday's £6.0496 (I class, acc) or £5.9821 (T class, acc).
Is there a morning price?
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Raj K on 07/02/2022(UTC), Guest on 07/02/2022(UTC)
Joe Soap
Posted: 07 February 2022 14:21:16(UTC)
#1189

Joined: 24/01/2010(UTC)
Posts: 2,157
D Bergman;207927 wrote:
Joe Soap;207921 wrote:
Fundsmith might just dodge dropping back below 600p. As expected, it's down this morning.


How can you see that?
FS's price is set about 14:00 every working day, so the latest price I can see is Friday's £6.0496 (I class, acc) or £5.9821 (T class, acc).
Is there a morning price?

Apologies. Schoolboy error. Looked at Smithson which is real time pricing. Then looked at Fundsmith and posted here without engaging my brain first.
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D Bergman on 07/02/2022(UTC)
Harland Kearney
Posted: 07 February 2022 17:06:21(UTC)
#1197

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I think the heavyweights in FS have further to fall yet, I do feel bad for anybody who invested in the previous months at all-time highs. I never normally market time but even I have refused to top up anything significant in the past 4 months with FS or tech-heavy hitters.

I think FS will still be a decent performer for long-term holding, but by the end of this year I would be very surprised if it beats the index with the upcoming FED tightening.
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kim shillinglaw on 09/02/2022(UTC)
Raj K
Posted: 07 February 2022 17:08:47(UTC)
#1200

Joined: 22/04/2016(UTC)
Posts: 2,819
Harland Kearney;207955 wrote:
I think the heavyweights in FS have further to fall yet, I do feel bad for anybody who invested in the previous months at all-time highs. I never normally market time but even I have refused to top up anything significant in the past 4 months with FS or tech-heavy hitters.

I think FS will still be a decent performer for long-term holding, but by the end of this year but I would be very surprised if it beats the index with the upcoming FED tightening.


You dont think it will beat the index this year or over the next five or ten years?
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