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  #101  
Old 07.03.2016, 23:58
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Re: Investment fund

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thanks for the reply FMF.
I'd like to pick your brain a little more on fundsmith if you agree.
I have cash in hand in EUR that I had planned to invest into fundsmith. Their pushback made me rethink/question my plan. If i invest EUR with fundsmith.eu will they just convert it to GBP anyway & apply their own in house rate & then it gets further converted to the purchase currency whatever that may be for the fund component shares?

Instead, should I just convert my EUR to GBP with currency fair or similar & have it sent to their GBP fund instead. I may be splitting hairs here or maybe not.

Further, whether I decide with EUR or GBP capital I am considering placing my lump sum with them & dripping it inot the fund over the next 12 months to average out the volatility of the Brexit on fx & also on component stocks of the fund.

You mentioned benefits to some investors of the fund being administered from Luxembourg, can you explain this please. Is it due banking privacy or absence of a bilateral tax agreement with some countries?

Appreciate your opinion/thoughts on the above points FMF.

H.
The fund investments are USD/GBP/EURO/CHF in that order, so I doubt they convert to £ for the hell of it.
The euro fund is quoted daily in euros so there won't be any conversions to £
The volatility of the £ is completely irrelevant, if it collapses the fund will grow by roughly the same amount, it's not holding much cash

Before the statutory definition of UK residence, my solicitor advised me not to hold any UK assets, so I only invested in non UK asses for 15 years. I suspect some funds may describe themselves as ex UK but might want to invest in Fundsmith.
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  #102  
Old 08.03.2016, 00:01
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Re: Investment fund

Thank you, I'll go ahead with the the EUR lump.
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  #103  
Old 08.03.2016, 00:33
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Re: Investment fund

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, so I only invested in non UK asses for 15 years. .
Hmmmmm sounds very adult fat-man?
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  #104  
Old 08.03.2016, 00:46
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Re: Investment fund

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Hmmmmm sounds very adult fat-man?
I wondered about that too. I think he's hinting that he did so well with his Apple shares (and Fundsmith, of course!) that he's had a string of Slavic supermodels hounding him for years.
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  #105  
Old 08.03.2016, 01:25
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Re: Investment fund

Yeah hounds alright
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  #106  
Old 08.03.2016, 10:01
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Re: Investment fund

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All of the feeder fund is invested in the GBP fund in the UK.

I have most of my money in the feeder fund, it's administered from Luxembourg & designated a non UK fund which suits some investors. There are only a few hundred customers in feeder fund so you always speak to the same person.
Download the paperwork from www.fundsmith.eu
Could you elaborate which investors does the Luxemburg feeder suit better?

Thanks
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  #107  
Old 08.03.2016, 10:11
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Re: Investment fund

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Could you elaborate which investors does the Luxemburg feeder suit better?

Thanks
See my reply 101
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  #108  
Old 08.03.2016, 10:32
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Re: Investment fund

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So I'm pretty impressed by the model & the performance of Fundsmith to date.
I've sent in my general application with my planned investment capital denominated in EUR. They have rejected this explaining that it is denominated in GBP. I had understand that there also is a EUR fund so I went back to them & they replied

"Fundsmith do offer a Euro Currency Fund called the Fundsmith Equity Fund Feeder. We do not administer this fund. For more information about this fund, please visit www.fundsmith.eu or call 00352 464 010 600."

Fund Feeder? This mean that the cash still goes into the same portfolio as the GBP investments just through a different channel?

We do not administer this Fund - I don't understand . It is a Fundsmith product, but they don't administer it.

FMF as you are au fait with fundSmith, can you shed any light?

Many thanks,
H.
https://www.fundsmith.co.uk/docs/def....pdf?sfvrsn=14
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  #109  
Old 08.03.2016, 10:43
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Re: Investment fund

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Could you elaborate which investors does the Luxemburg feeder suit better?

Thanks
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See my reply 101
That post seems to be about uk vs non uk assess (which is an interesting topic indeed).

On a serious note: is the hoilding or non-holding of UK assets the only difference?

What I noticed is that the feeder fund has 1.27% fee vs. 1.07% of the master fund.
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  #110  
Old 08.03.2016, 10:59
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Re: Investment fund

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That post seems to be about uk vs non uk assess (which is an interesting topic indeed).

On a serious note: is the hoilding or non-holding of UK assets the only difference?

What I noticed is that the feeder fund has 1.27% fee vs. 1.07% of the master fund.
why pay an extra middle-man?
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  #111  
Old 08.03.2016, 13:52
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Re: Investment fund

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1.27% fee vs. 1.07% of the master fund.
Good catch.
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  #112  
Old 08.03.2016, 15:26
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Re: Investment fund

Fundsmith is a decent fund and has provided good returns so far, but it's also relatively new and is biased toward consumer goods companies which have been highly in demand recently due to oil/commodities/banks etc. dropping. It's a good fund to have in a portfolio but best to diversify with other funds / stocks / ETFs, imo. Other notable fund managers include Neil Woodford, Giles Hargreaves, Nick Train, ...
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  #113  
Old 08.03.2016, 21:20
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Re: Investment fund

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That post seems to be about uk vs non uk assess (which is an interesting topic indeed).

On a serious note: is the hoilding or non-holding of UK assets the only difference?

What I noticed is that the feeder fund has 1.27% fee vs. 1.07% of the master fund.
Spell correct on a mobile device at the airport!

Yes the only difference plus additional costs of another level of management.

Hold the UK funds through say Hargreaves Lansdown will cost even more. Dealing direct is always the cheapest with Fundsmith, it's just currency you might prefer at redemption.
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  #114  
Old 21.03.2016, 23:00
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Re: Investment fund

Have you read "The Four Pillars of Investing", by William Bernstein? It's one of the best books I've read. One of the points it makes is that you're generally better off investing in unmanaged funds.
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  #115  
Old 22.03.2016, 22:52
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Re: Investment fund

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Have you read "The Four Pillars of Investing", by William Bernstein? It's one of the best books I've read. One of the points it makes is that you're generally better off investing in unmanaged funds.
Seems lots of people lack the basic knowledge of the financial market.

I would recommend "A Random Walk Down Wall Street". Fun to read with the same conclusion: investing in low-cost broadly diversified index funds.
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  #116  
Old 23.03.2016, 08:00
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Re: Investment fund

"A Random Walk.." is also referenced in a much shorter read by William Bernstein called "If you can: how millennials can get rich slowly".

An interesting point is that generally, the length of time your money is in the market has the biggest impact on your returns.

I'm far from millennial, and started investing late, but fingers crossed still have time to stash enough away into cheap, broad market, passive ETFs.
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  #117  
Old 23.03.2016, 08:06
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Re: Investment fund

The OP is talking about investing for a year- That's too short-term I'd say for putting the money anywhere other than somewhere totally safe (savings account).
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  #118  
Old 05.04.2016, 09:01
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Re: Investment fund

...having said that, some kind of capital guarantee structured product might be worth looking into. You can buy these from Credit Suisse, Julius Bär etc.

There'll be fees and most likely a minimum investment amount to consider, but could still be better than a savings account.
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  #119  
Old 05.04.2016, 16:24
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Re: Investment fund

Had a look at the fundsmith.co.uk
https://www.fundsmith.co.uk/global/eu/fund-factsheet
Added almost all funds to the chart they lol really correlated lol and the chart resemble the SPY chart probably a high beta. May well just invest in SPY
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  #120  
Old 05.04.2016, 16:57
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Re: Investment fund

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...having said that, some kind of capital guarantee structured product might be worth looking into. You can buy these from Credit Suisse, Julius Bär etc.

There'll be fees and most likely a minimum investment amount to consider, but could still be better than a savings account.
That's technically a good idea but unfortunately it doesn't work in the current environment. Low interest rates killed capital guaranteed structured products. When risk-free (technical term) instruments like US and German treasuries earn zero or negative rates, there is mathematically no way that you can structure the risk-free and risk taking part of your product so it outperforms. As soon as interest rates reach zero, the entire structure becomes 100% bonds, because there is no interest gain to guarantee the risk taking portion at maturity. Schade!

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Had a look at the fundsmith.co.uk
https://www.fundsmith.co.uk/global/eu/fund-factsheet
Added almost all funds to the chart they lol really correlated lol and the chart resemble the SPY chart probably a high beta. May well just invest in SPY
Lololololol. Lol lol.

Seriusly though, we did some calculations with FMF, and, since 2011 they did produce respectable alpha over SP500 but I can't be bothered to look up the post.
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