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Gawd ! How confusing...
I've read through all the bumph re the 3 different Fundsmith Accumulator funds (I, T and R) and it seems both I and T are preferred as they have the lower charges (R is the older version with higher charges but which pays a small loyalty bonus).
It seems T us the same as I, but us more expensive because you buy that directly from Fundsmith itself, but get the "bonus" of a regular newsletter from Terry himself!!
I'm thinking to simply buy Fundsmith "I" Accumulation, but do wonder if anyone on here did differently...
Thanks Frogster .
I s made the necessary decision and sold some holdings (actually PCT not ATT having carefully deliberated things, and am now looking to buy Fundsmith...
Problem is there are around 4 accumulator funds on offer!
I'm thinking I'm looking to buy the one marked "Fundsmith Equity / Accumulation", not the ones marked also "A" and "T"?
I also see ATT as a reasonable investment so certainly would sell all . I actually probably have too much in ATT (around 33% of my holdings,which is why I'm thinking perhaps a sensible diversification given the current threats re large American monopoly companies and China (all prevalent in top ATT holdings) versus a fund remaining in tech yet having no fingers directly in China and only a few fingers in companies open to a potential future legislation burning. .
I'm thinking perhaps a sensible diversification which might diversify at the same time as spread risk..
I guess that's all we can do as investors as of course there are no guarantees…
I feel the likelihood (as before) will be that legislation will fail to significantly dent the futures of the biggies, but it does remain a big question mark (plus the legislators seem to keep coming back at them).
Last question... I note an "ongoing charge" which covers the cost of the fund... (Fundsmith Equity GBP).. I understand this, but wondered how the payment is effected? Im assuming they simply subtract it from any profits?
Thankyou :)
Thanks CL and Frogster.
Silly question I could have googled I guess, but I was wondering how people on here felt about those differences.
I've only ever bought It's that are closed ended down to perceived worries as goes profits depletion (as I understand closed ended trusts retain 15% of profits rather than paying the lot to individual companies), but thinking on this now, Im not sure how a trust such as this (investing in so many companies) would cause open ended to be a significant worry...
I guess rewarding companies with their full earned returns might also be seen to be more likely to ensure continuing success?
I'm asking this lot as have slight concerns re ATT, a similar closed ended trust to SMT.. Their top holdings include all the biggies in the sights currently as goes fair competition legalities...
I'm playing with the idea of reducing there and tipping into Fundsmith instead.
I do also see Meta and Microsoft in their top holdings, but a quick glance suggests them (to me at least) to be far better set up against these emerging legal threats to monopolies...
Both ATT and Fundsmith appeared to have almost matched performances over the last 4 years (excepting a period of greater froth re ATT just pre Nov 21.
Doing as above doesn't strike me as a terrible idea, as it appears to me it will steer from China, diversify my holdings plus limit any damage from big monopoly legislation?
Does that sound reasonable or am I overthinking the threat of regulation do members here think??
Actually. Found an explanation (never invested "income" before), and I would guess accumulation would be the sensible and more profitable thing...?
Any more info on Fundsmith or ideas (even pitfalls, if any) would be wonderful!
Rethinking my last comment and on the basis of SMT holdings (which seem reasonably balanced in terms of the threats I was talking of in my last post), I'm definitely think they are better placed that ATT and PCT to weather things..
It's a definite hold for me.
A question to LLL, if I may (or any that know)... I see Fundsmith is open ended IT (I do tend to buy closed), any thoughts on this at all in terms of security (I ask only because it would be new to me)?
Also, I not there are two formats for buying in.. Accumulation or Income...
Can someone explain the difference?
Many thanks.
Fair enough CP.. In all honesty I am reflecting myself this morning on the upcoming legal threat to the biggies (Amazon, Microsoft, Google etc), which does (along with the current China rumpus) leave me slightly less optimistic as goes SMT...
I'm thinking this is a concern quite a few investors will have in these generalised ITs that do have investment in China (even small) such as also PCT and ATT.
Events always show undue worry over Western/China trade issues which naturally resolve (as neither side wish to become poorer via endless tit for tat), although I do worry slightly more as goes the Western ability to deregulate the biggies, whether to do so is right or wrong...
Looking at the markets today I think those fears are reflected.
Fundsmith I note are up whilst SMT and the two mentioned above are down.
Not massively surprising I suppose...
CP, I guess I'm just trying to say that most collective tech investments are at a similar low sentiment point now, and so on that basis selling SMT (having less faith in it than perhaps other similar funds) and buying another in its place wouldn't be as silly as it sounds for you.
I have to admit looking at the performance of Fundsmith (for example), I feel they too will be poised for upwards movement once the same set of rubbish depressing these type of investment lifts.
On that basis I'm not sure selling over personal worries and opinions concerning current holdings has to necessarily a mistake.
I do think still you'll be fine holding (and hopefully won't sell once they lift slightly to the price you paid), and this is because I think they will continue upwards as conditions lighten in terms of the concerns they happen to be.
You would then conceivably find yourself in-between shifts as buying becomes more expensive.
It's a natural urge to hold to get what you paid back, but when viewed logically with the conviction that better opportunities are elsewhere, it never really makes sense.
I am holding SMT, but then it's my opinion that they stand to make a fair bit more before that long, but no one knows..
I am genuinely trying to be helpful :)
Diligence totally required.
Did so from Barclays to II and Barclays "lost" my connection to dividend links with several of my investments..
Had to fight for 2 years to get them reconnected..
Barclays however lost their entire structure when they completely reconfigured from decent Barclays Stockbrokers to BetFred (my analysis) SmartInvestor...
Awful transition....
why not just sell smt and buy fundsmith (if anything)?
seriously cp, looking at their stats and performance you can negate the recent china threat and still stay invested in tech and receive the confidence rebound that is due to the sector.
it will happen..
admittedly it seems smt are still viewed as **** alley, but then when the sun comes back out and tech again becomes future and near money i believe they'll match or outdo fundsmith???
who knows.
but i do think it likely you are fundamentally invested wrongly.
you shouldn't be into anything that stops you sleeping at night, and tbh, you could be right and i could be wrong.
At least the bottom is found?
Meant directly to Captain Picard.
Negativity abounds during a period of negativity.
Is that a sensible appraisal?
I could be correct in stating that it's the bottom at above £6, but who knows?
China is the joker (again) right now, so I'm slightly on edge at the mo and almost considered into cashing into tech devoid of china (re Fundsmith discussion here recently).
I won't, because the pattern is always that China pushes then demurs as a natural and constant consequence of being made poorer by other economies soliciting against it. It always happens and will continue to do so.
China is a rich country representing 1/5th of the world's entire wealth. They could cut their throats on their wish to become the ultimate superpower by alienating the world which is required to achieve that, but I believe diplomacy will (as ever) preside.
We cannot, despite our wildest wishes just close our eyes and ignore China. The key is to understand them better and define our individual nationalistic positions and work with diplomacy.
That's their requirement as it is ours.
Can I be frank and ask if you still hold any SMT? The massive negativity hearing you coming back in with a comment after weeks really does suggest to me that you should sell if you are still in to any degree.
Most tech is dragging low in a similar fashion now and so given that tech will rise again (as people will not accept backwards or the status quo), have you considered selling SMT and buying into something you consider more certain, or are you still holding despite the negativity?
Agreed, LLL, but it's an unavoidable investment sector for sure.
Thanks for the circa 8% info.
It's thankfully small enough to negate undue worry, although tit for tat trade reprisals resulting in the usual temporary lack of investment enthusiasm seem a likely repercussion.
Ps. I see it is simply governmental workers who have been banned from using Iphones, which does strike me as more measured yet a more petty action bound to engender national resentment.
More worrying I guess the fall in gdp reported for China over the last few weeks and reiterated yesterday.
India also having the G20 limelight from today and Jinping's partial dismissal of this by not attending in person underlines rising tensions also.
Fingers crossed for moderate reaction all around, although there is usually some panic before all parties realise it is totally against individual economic positivity to neglect diplomacy.
Oh well ..
Here we go again as seems a new slew of resentful trade standoffs seems likely as a result of the US hold on China products and services. Hopefully moderation will prevail and China will choose a route of diplomacy and tact, although the banning of iPhones in China seems to dictate that the door is fully open to a slew of tit for tat activities to come.
In many ways it's easy to see how China will feel wronged to a degree re the Western freeze on Chinese "sensitive" technology, as you can bet your bottom dollar the US is using it to at least some degree politically and economically.
Their stance that we face an "us or them dominating world dominance" future on this one isn't exactly going to temper things down.
Hopefully diplomacy will win over and at least the latest tip downwards doesn't appear to be too awful at present.
Does anyone happen to know SMTs approximate percentage exposure to China? I know they have reduced somewhat (more recently in Nov 22)...
Thanks LLL.
It seems my II account now allows me to include 2 other full accounts (including both a sipp or trading account and trading ISA) free of charge, so I'll just get HL to close and transfer over.
That might be useful info to others on here too, as £250 a year including free trades when you've got a reasonable sized stake in there doesn't seem too bad to me.
There defo seems cheaper but I'll stick for now.
I know someone who holds small time in HL (all oeics). Can anyone recommend the best place she should head as goes a pot under £5k of investments? Hassle free would be good too, but looking at their sell Vs buy prices (rather than a single market price and presumably to skim for trading) it looks like they will sting her on the way out also...?
I didn't realise how bad they were until reading these comments!