18th Mar 2016 14:43
LONDON (Alliance News) - Fundsmith Emerging Equities Trust PLC Friday said it outperformed its benchmark in 2015, despite reporting a negative total return on net asset value of 7.0%.
The trust's benchmark, the MSCI Emerging and Frontier Markets Index, saw a negative total return of 10.0% in the year.
Fundsmith said shareholders should be "reassured by the positive returns on capital and profit margins in [its] underlying investee companies".
The trust did not recommend a dividend for the year, and warned it "may not do so for some time".
"Our investment manager continues to be cautious with regard to the short-term prospects for the target developing economies, but remains confident in the quality of the underlying investee companies. Whilst Developing Economies continue to experience volatility, their domestic demand-led growth is evident," Fundsmith said.
Shares in Fundsmith were down 1.1% at 964.29 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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