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  #121  
Old 21.02.2019, 13:08
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Re: Question regarding Fundsmith

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-wait until 30th March when the GBP may become cheaper (assuming a crash out of EU) or
Won't comment on rest, but you don't need to wait for 30-Mar on account on above. The portfolio is 88% non-UK stuff. So you are not really buying into GBP, it is only a denomination currency, not the risk currency (the portfolio does not hedge anything).
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  #122  
Old 04.03.2019, 12:08
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Re: Question regarding Fundsmith

to anyone investing in the fund in Luxembourg: does anyone know what the upcoming change on 29.03 is about? can you explain in layman terms, and what the effects would be? thanks!
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  #123  
Old 04.03.2019, 12:25
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Re: Question regarding Fundsmith

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to anyone investing in the fund in Luxembourg: does anyone know what the upcoming change on 29.03 is about? can you explain in layman terms, and what the effects would be? thanks!
Can you share your communication?, my post is being redirected in an unreliable manner. I doubt it's important & can't see anything on the website. Looks like we are at an all time high in Euros up 13.7% YTD
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  #124  
Old 04.03.2019, 13:27
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Re: Question regarding Fundsmith

it could be important as I it came with registered letter with counter-signature. I'll try to remember to scan it tonight.
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  #125  
Old 04.03.2019, 14:25
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Re: Question regarding Fundsmith

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it could be important as I it came with registered letter with counter-signature. I'll try to remember to scan it tonight.
OK I got mine today, as they only have a handful of investors it's cheaper to send all regulatory stuff by registered post.

Due to the possibility of a no deal BREXIT, Fundsmith LLP a UK company, will not manage the fund, so a Luxembourg company FUNDROCK will become the manager. FUNDROCK will then appoint Fundsmith LLP who in then will appoint Fundsmith investment services limited.

State Street Luxembourg will continue its role.

The changes won't impact investment decisions in any way, Terry Smith will still be taking all the decisions from Mauritius as he has done since 1 January 2017
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  #126  
Old 04.03.2019, 18:22
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Re: Question regarding Fundsmith

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OK I got mine today, as they only have a handful of investors it's cheaper to send all regulatory stuff by registered post.

Due to the possibility of a no deal BREXIT, Fundsmith LLP a UK company, will not manage the fund, so a Luxembourg company FUNDROCK will become the manager. FUNDROCK will then appoint Fundsmith LLP who in then will appoint Fundsmith investment services limited.

State Street Luxembourg will continue its role.

The changes won't impact investment decisions in any way, Terry Smith will still be taking all the decisions from Mauritius as he has done since 1 January 2017
They mention something about the Luxemburg fund no longer being a feeder but directly investing. What is the effect of it? Does it mean movement of fund in EUR will match that of GBP?
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  #127  
Old 04.03.2019, 18:48
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Re: Question regarding Fundsmith

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They mention something about the Luxemburg fund no longer being a feeder but directly investing. What is the effect of it? Does it mean movement of fund in EUR will match that of GBP?
Increase of security for investors, one member here did say the risk of a feeder fund was higher.

The daily valuation of the funds do match already except for slightly higher fees in Luxembourg. The main assets of the fund are listed in USD, the daily values are then converted to £ & €.

The £ has strengthened this year which explains the YTD gain of £ fund plus 8.9% & the € fund plus 13.7%. The investments are the same just different reporting currencies.
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  #128  
Old 04.03.2019, 18:51
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Re: Question regarding Fundsmith

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Looks like we are at an all time high in Euros up 13.7% YTD
which means it will crash soon, and time to buy in?
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  #129  
Old 04.03.2019, 19:22
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Re: Question regarding Fundsmith

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which means it will crash soon, and time to buy in?
It's been making all time high throughout the 8 year history since inception.

Original price 100.00p
Today it's 409.29p

Stock markets go up over time you can completely ignore market fluctuations as over the long term they are irrelevant. Holding cash will have a far greater effect on your wealth over time.
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  #130  
Old 20.03.2019, 11:25
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Re: Question regarding Fundsmith

Fundsmith 2019 ASM now available

https://www.youtube.com/watch?v=d3cRr318ve4
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  #131  
Old 28.03.2019, 18:10
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Re: Question regarding Fundsmith

I was researching the first time I mentioned Fundsmith on this forum, I have found this post form 17/11/2012, there could be an earlier mention, however it's about the time I started to invest in the fund.

https://www.englishforum.ch/1719119-post39.html

So how has the performance been since then?

Friday 16 November 2012
£1.2732
€12.4649

Today
£ 4.2256
€38.26

Thats up 232% in Pounds or 190% in Euros, pretty consistent over 6 years & 4 months. Its been my most successful investment ever & I plan to hold indefinitely.

21% compound return in Pounds
18.5% compound return in Euro

Edit The link in the post above no longer works
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  #132  
Old 29.03.2019, 10:33
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Re: Question regarding Fundsmith

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I was researching the first time I mentioned Fundsmith on this forum, I have found this post form 17/11/2012, there could be an earlier mention, however it's about the time I started to invest in the fund.

https://www.englishforum.ch/1719119-post39.html

So how has the performance been since then?

Friday 16 November 2012
£1.2732
€12.4649

Today
£ 4.2256
€38.26

Thats up 232% in Pounds or 190% in Euros, pretty consistent over 6 years & 4 months. Its been my most successful investment ever & I plan to hold indefinitely.

21% compound return in Pounds
18.5% compound return in Euro

Edit The link in the post above no longer works
Good call sir

How did you come across the fund in the first place, and have you always been investing in mutual funds, or did you start out investing in individual stocks and then switch?
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  #133  
Old 29.03.2019, 14:13
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Re: Question regarding Fundsmith

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Good call sir

How did you come across the fund in the first place, and have you always been investing in mutual funds, or did you start out investing in individual stocks and then switch?
I had been following Terry Smith for the previous 25 years, so knew he was pretty much always right, time & time again.
Up until that point I rarely invested in funds, I invested directly in shares. I was looking to reduce my risk appetite slightly, I was 50 & planning an early retirement.
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  #134  
Old 25.04.2019, 12:59
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Re: Question regarding Fundsmith

I contacted Fundsmith for information of Revenue by region which is very different from country of listing normally shown.

FUNDSMITH
North America : 46%
Europe : 24%
Asia pacific : 19%
Eurasia, Middle East, Africa 6%
Latin America : 5%

SMITHSON
North America 39%
Europe including UK 36%
Asia Pacific 18%
Eurasia, Middle East & Africa 2%
Latin America 2%
Cash 3%
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  #135  
Old 26.04.2019, 08:40
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Re: Question regarding Fundsmith

Has anyone tried to send the money to fundsmith from revolut? It would decrease the cost of currency change that otherwise occurs
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  #136  
Old 26.04.2019, 13:20
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Re: Question regarding Fundsmith

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Has anyone tried to send the money to fundsmith from revolut? It would decrease the cost of currency change that otherwise occurs
yes. worked without problems
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  #137  
Old 26.04.2019, 17:36
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Re: Question regarding Fundsmith

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I contacted Fundsmith for information of Revenue by region which is very different from country of listing normally shown.

FUNDSMITH
North America : 46%
Europe : 24%
Asia pacific : 19%
Eurasia, Middle East, Africa 6%
Latin America : 5%

SMITHSON
North America 39%
Europe including UK 36%
Asia Pacific 18%
Eurasia, Middle East & Africa 2%
Latin America 2%
Cash 3%

I have managed to get similar info from Lindsal Train Global Equity excluding cash
Japan 13%
Western Europe 26%
US 33%
Emerging & Other 26%
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  #138  
Old 09.05.2019, 11:28
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Re: Question regarding Fundsmith

Really interesting thread and great input fatmanfilms. It helped a lot. I’ve also been watching FS for some time and have been impressed, although at the moment I only invested standard index fund etfs. 2018 was another example of how their portfolio is resilient enough to handle challenges such as the bloodbath in Q4.

Fatmanfilms, I’m assuming, maybe wrongly, that you plan to retire in CH or withdraw some of the nest egg back to CHF. How are you going to mitigate against currency exposure risk? Such impressive gains in the GBP (or Euro) account when converted back to CHF could be heavily impacted, no?

Example scenario:

E.g. Today:
10K CHF > 7.5K GBP lands in FS, based on rate 1 gbp is 1.32chf

5 years later assuming a modest 10% return with FS:
7.5K GBP grows to 12K GBP.

At this point, lets move our money back here to Switzerland:

12k gbp Converted at same rate as ‘today’ shown above is 15.9K CHF
12k gbp Converted at May 2009 rate from yahoo finance, (1gbp is 1.73chf) is 20.7K CHF.
12k gbp Converted at fictional weaker rate (e.g. 1 gbp to 0.80CHF) is 9.6K CHF.

Obviously this can work with or against you quite significantly- 15.9K & 20.7K are huge 59% & 109% gains on the original 10k investment, however drops into the fictional weaker ranges could result in a net loss despite solid Fundsmith returns.

Currency conversions at these weaker ranges, e.g. of 1gbp to 1.10chf and under, you have to question the risk here, no?

Buying 10K CHF worth of an SMI index tracker (I know I know, don’t hate me- just an example) locally and getting half the performance of the FS example above at just 5% returns, results in a portfolio value of 12.7K CHF after 5yrs - the equivalent of having a currency rate of 1gbp to 1.05chf.

Keen to hear your thoughts on the above!
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  #139  
Old 03.07.2019, 22:40
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Re: Question regarding Fundsmith

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Really interesting thread and great input fatmanfilms. It helped a lot. I’ve also been watching FS for some time and have been impressed, although at the moment I only invested standard index fund etfs. 2018 was another example of how their portfolio is resilient enough to handle challenges such as the bloodbath in Q4.

Fatmanfilms, I’m assuming, maybe wrongly, that you plan to retire in CH or withdraw some of the nest egg back to CHF. How are you going to mitigate against currency exposure risk? Such impressive gains in the GBP (or Euro) account when converted back to CHF could be heavily impacted, no?

Example scenario:

E.g. Today:
10K CHF > 7.5K GBP lands in FS, based on rate 1 gbp is 1.32chf

5 years later assuming a modest 10% return with FS:
7.5K GBP grows to 12K GBP.

At this point, lets move our money back here to Switzerland:

12k gbp Converted at same rate as ‘today’ shown above is 15.9K CHF
12k gbp Converted at May 2009 rate from yahoo finance, (1gbp is 1.73chf) is 20.7K CHF.
12k gbp Converted at fictional weaker rate (e.g. 1 gbp to 0.80CHF) is 9.6K CHF.

Obviously this can work with or against you quite significantly- 15.9K & 20.7K are huge 59% & 109% gains on the original 10k investment, however drops into the fictional weaker ranges could result in a net loss despite solid Fundsmith returns.

Currency conversions at these weaker ranges, e.g. of 1gbp to 1.10chf and under, you have to question the risk here, no?

Buying 10K CHF worth of an SMI index tracker (I know I know, don’t hate me- just an example) locally and getting half the performance of the FS example above at just 5% returns, results in a portfolio value of 12.7K CHF after 5yrs - the equivalent of having a currency rate of 1gbp to 1.05chf.

Keen to hear your thoughts on the above!
Whatever you do don't hedge anything, Fundsmith does not & it a UK fund for UK investors.The individual companies may have already done some hedging, however income is derived as follows :- (Different from country of listing of shares)

FUNDSMITH
North America : 46%
Europe : 24%
Asia pacific : 19%
Eurasia, Middle East, Africa 6%
Latin America : 5%

If you owned Nestle as a Swiss investor, how would you hedge your currency exposure? 98% of profits come from outside CH, more profit comes from India than than CH but I doubt you would hedge that

Your calculations are irrelevant why not look at returns in FS in CHF which are as follows:-

YTD 22.19% 1 year 12.25% 3 years 57.89% 5 Years 114.93% See figures for £/€/CHF in the feeder fund


I retired aged 52 in Eurozone 58 months ago.

It's actually an exciting day performance wise for Mr & Mrs FMF as my first significant investment 6 years 2 months to the day has TRIPPLED so 18.7% compound

My wife's first ever equity investment 3 years 6 months & 4 days ago has DOUBLED so 20.5% compound
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question-regarding-fundsmith-screenshot-2019-07-03-22.35.27.png   question-regarding-fundsmith-screenshot-2019-07-03-22.54.23.png  

Last edited by fatmanfilms; 03.07.2019 at 22:55.
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  #140  
Old 04.07.2019, 07:48
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Re: Question regarding Fundsmith

FMF, how can you retire at 52, you've never worked !!
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