Fundsmith Emerging (FEET) - Crazy idea?

[Howard]

As a holder and nursing a small loss, I have been lurking on this board. Despite the above recent views, the price keeps edging down. This within a context of a degree of stability in the markets. Does anyone know what the likely timetable would be post 14/11 for a payout?

It does state:

Expected date for payment of Initial Distribution*
on or about 18 December
* Actual date to be determined by the Joint Liquidators

Any idea what an 'initial' distribution will actually look like?

T7

If you look at the latest fundsheet you will see where the investments are listed. Most holdings are large, liquid companies on major stock markets, so I would expect maybe 80% or more to be returned in the initial distribution. The delay for some holdings will likely be because they are listed on less liquid stock markets (i.e. in the 11.4% listed under "Other Countries") or because of the liquidity of the holding itself, so selling without the price moving against them in this case is likely to be an issue. Then again I could be completely wrong! We're all guessing at this point as there is nothing definitive in the public domain.

Has anyone seen news of any update re distribution? Should we just assume for reinvestment reasons that monies will not hit our accounts much before the holidays?

T7

If you look at the FEET site, it states

"As set out in the Company circular dated 11 October 2022, it is currently expected that the Company’s portfolio will be realised and the proceeds distributed to shareholders via two distributions. The first distribution, which is expected to be around 90% of the Company’s portfolio by value, is expected to be made around 18 December 2022. A second and final distribution is expected to be made by 11 August 2023."

https://www.feetplc.co.uk/

So I guess it's worth waiting until a few days after 18 December to see the initial proceeds hit your account.

regards

Howard

[doug2500]

So £12.40 should be in your broker account today.

Final payment by 11.08.23

https://www.feetplc.co.uk/

I'm off to check for my cash.....

[doug2500]

Despite it saying this:

Shareholders who hold shares through a broker or platform will receive their distribution via their broker or platform on 16 December 2022. Shareholders who hold their shares in certificated form will receive their distribution by cheque and those cheques will be issued by the Company’s Registrar (Link Asset Services) on 16 December 2022 to the address on the share register as at the Record Date.

I don't have the cash, maybe it'll be close of business?

[terminal7]

Monies just hit my account this afternoon.

There does not appear any guidance as per the approximate quantum of the balance.

T7

[doug2500]

Monies just hit my account this afternoon.

There does not appear any guidance as per the approximate quantum of the balance.

T7

I think previous guidance was about 90% this payment, but of course they won't know exactly until everything is tidied up. The tax implications in April may yet prove to be a headache.

[Dod101]

And is all of this worth the effort of buying when the issue was first identified? It is not the mechanics of the wind up that matters (except of course to long term shareholders) for the purposes of this thread?

[Spet0789]

Monies just hit my account this afternoon.

There does not appear any guidance as per the approximate quantum of the balance.

T7

I think previous guidance was about 90% this payment, but of course they won't know exactly until everything is tidied up. The tax implications in April may yet prove to be a headache.

If the liquidation ultimately delivers c1375p per share, that will have been a decent result.

[doug2500]

Across 3 family execution only brokers one credited cash on the 16th, one on 19th and one still waiting.

[flyer61]

So bought ironically at 1240p on 15 October and now have my initial outlay back. How much more to come I wonder...for 2 months I am guessing it will work out to have been a good buy. Thanks again to simoan.

Now need something else to buy!

NBMI or AXI are doing something similar....

[flyer61]

Another closing it's doors is VPC Specialty Lending Investments. VSL

at a 17% discount.

[Gilesyb27]

And is all of this worth the effort of buying when the issue was first identified? It is not the mechanics of the wind up that matters (except of course to long term shareholders) for the purposes of this thread?

I'd say its worth it, I have invested some money and received it back in less than 2 months (including all dealing costs). At some point next year I will receive an unknown amount representing up to 10% of the initial capital. Capital that is already re-deployed to other investments.....

[flyer61]

Likewise, I have redeployed the proceeds from FEET into NBMI and am prepared to see what happens.

[Howard]

I am wondering about the administration of the second distribution?

I ask because after the first distribution FEET has disappeared from my portfolio as shown by my online stockbroker.

I assumed that the account would continue to show a record of the rump holding. Will call them on Monday just to check how they/I will receive the final payment later this year.

Has anyone else noticed this in their account?

regards

Howard

[scotia]

I am wondering about the administration of the second distribution?

I ask because after the first distribution FEET has disappeared from my portfolio as shown by my online stockbroker.

I assumed that the account would continue to show a record of the rump holding. Will call them on Monday just to check how they/I will receive the final payment later this year.

Has anyone else noticed this in their account?

regards

Howard

I believe the Ticker FEET has been delisted, so probably won't appear on a stock list.

[Lootman]

I am wondering about the administration of the second distribution?

I ask because after the first distribution FEET has disappeared from my portfolio as shown by my online stockbroker.

I assumed that the account would continue to show a record of the rump holding. Will call them on Monday just to check how they/I will receive the final payment later this year.

Has anyone else noticed this in their account?

I believe the Ticker FEET has been delisted, so probably won't appear on a stock list.

FEET still appears on my account (ii) but with zero shares and a zero valuation.

[Pendrainllwyn]

The position has disappeared from my account. I am not overly concerned. When the broker receives the second distribution, regulations require them to treat it as client money, segregate it and distribute to the appropriate accounts.

Pendrainllwyn

[Alaric]

When the broker receives the second distribution, regulations require them to treat it as client money, segregate it and distribute to the appropriate accounts.

It also means that the portfolio value is understated by the value of the right to receive the second distribution, But I'm not aware that right can be traded, so it's treated as having no value. I wonder how instutions are treating it though, particularly where they are required like OEICs to do a daily valuation for unit prices or like ITs for a monthly NAV statement.

[Dod101]

When the broker receives the second distribution, regulations require them to treat it as client money, segregate it and distribute to the appropriate accounts.

It also means that the portfolio value is understated by the value of the right to receive the second distribution, But I'm not aware that right can be traded, so it's treated as having no value. I wonder how instutions are treating it though, particularly where they are required like OEICs to do a daily valuation for unit prices or like ITs for a monthly NAV statement.

Surely the answer is that it is now treated as an asset, a sum owed to the business. It is no longer a tradeable security (it has been delisted) so it no longer appears in accounts as though it were one. The portfolio may show it as a debt (a bit like an unpaid dividend)

Dod

[Steveam]

Is there any statement about the timing of the further distribution?

Best wishes, Steve

[jaizan]

I thought the further distribution was expected in August, but I am not aware of any recent updates.