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Fundsmith Emerging Equities inaugural results

Fundsmith Emerging Equities has published its inaugural results that cover the period from its incorporation on 31 October 2013 to 31 December 2014. The fund didn’t really get going until June 2014 however – it listed on 25 June 2014.

Over the period the fund underperformed its benchmark, the MSCI Emerging and Frontier Markets Index, by 0.8% – the fund’s net asset fell by 0.3% while the index rose by 0.5%. However shareholders were rewarded by the fund moving to trade at a substantial premium and the return to shareholders was 7.2%.

Since the period end the fund has underperformed further – the statement says that, almost nine months after listing, the fund is still not fully invested. Also the premium has come off a bit since the year end.

The Chairman’s statement says that part of the underperformance over the period is down to fees and part is down to cash drag as they invested the money they raised over time. They have published lists of the stocks that contributed most to the fund’s performance both positively and negatively. In this instance the only stock that makes much of a difference was Eastern, Egypt’s leading tobacco company, which added almost 0.5% to the net asset value.

FEET : Fundsmith Emerging Equities inaugural results

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