Fundsmith Emerging Equities has published results for the year ended 31 December 2015. The MSCI Emerging and Frontier Markets Index, measured on a net sterling adjusted basis, fell by 10.0% over the year. The Company’s net asset value per share outperformed the benchmark but fell by 7.0% itself (after expenses). The Company’s share price also fell, by 10.9% to 955.0 pence per share over the year, but remained at a premium to the Company’s net asset value per share at the end of the year, being 3.0%.
As the Company is now fully invested and has consistently traded at a premium to net asset value, the Board has been considering a share issuance programme to increase the capital of the Company and will utilise the existing shareholder authority to issue up to 10% of the Company’s issued share capital, which was obtained at the Company’s Annual General Meeting in 2015, to commence this process.
The manager’s report says that the top five contributors to performance were Vitasoy International, Godrej Consumer products, Marico, Britannia Industries, and Grupo Lala SAB – between them these added 4.2% to the NAV.
The top five detractors were Want Want China Holdings, Shoprite, Forus SA, Guinness Nigeria and Nigerian Breweries
In terms of currencies, the largest negative impacts upon the portfolio were from the Brazilian real and the South African rand.
FEET : Fundsmith Emerging looking to expand