Edison Group: Fundsmith Emerging Market trust 'well placed' to face challenges

Concentrated portfolio paying off

Kathleen Gallagher
clock • 2 min read
Edison Group: Fundsmith Emerging Market trust 'well placed' to face challenges

The approach of Fundsmith Emerging Market trust (FEET) is starting to pay off and its portfolio “appears well placed” for upcoming challenges and opportunities, according to a new analyst note from Edison Group.

The £371m trust, which is run by Michael O'Brien, has made a "number of changes in emphasis" which are playing to its benefit, the note said. The trust is currently trading at a 9.7% discount and has been trading at a discount since about mid 2019, according to data from the Association of Investment Companies (AIC). This year the trust increased its portfolio concentration, changing the investment policy to allow a holding of 25-40 stocks instead of 35-55 stocks. Edison highlighted the reduced number of holdings, 37 according to the latest factsheet, saying it "allows the managers...

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