31st Jul 2018 18:34
LONDON (Alliance News) - Fundsmith Emerging Equities Trust PLC said Tuesday said it outperformed its benchmark in the first half of its current financial year helped by net asset value growth.
In the first half of 2018, NAV total return was negative 1.8%, while its benchmark, MSCI Emerging and Frontier Markets Index, measured on a net sterling adjusted basis, returned negative 4.5%.
As at June 30 the company's share price stood at 1,245.0 pence per share, representing a 0.7% premium to NAV.
The stock closed 0.4% lower on the day Tuesday at 1,300.00p per share.
Net asset value per share grew over the period to 1,236.7p from 1,134.5p as at the end of June last year.
Fundsmith said that emerging and frontier markets suffered generally over the period due to rising US interest rates and the collapse of the Iran nuclear deal.
"It is not surprising to see Fundsmith outperform in a period in which developing markets do poorly as the stocks we own are defensive in their exposure to basic consumer needs," said Investment Manager Terry Smith.
No interim dividend has been declared with Fundsmith only paying the dividends sufficient to "maintain UK investment trust status".
Funsmith's total balance increased year-on-year to GBP320.9 million from GBP278.7 million.
"Our investment manager's fundamental approach and portfolio construction processes remain unchanged...The board continues to believe that these investments will deliver attractive returns for our shareholders in the long term," said Chairman Martin Bralsford.
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