Fundsmith Equity I Acc

Global Growth

Rated Fund 2013-20. A concentrated portfolio of big brands        

Regarded by Morningstar as “one of the strongest options for investors seeking exposure to high-quality global equities”, Fundsmith Equity has grown to almost £19 billion in size since its launch in 2010. An incredibly strong track record under industry stalwart Terry Smith has won it a plethora of gongs. It was named Money Observer’s Best Larger Global Growth fund in 2016 and 2017 and was highly commended in this category in 2015 and 2018.

The fund invests in high quality, well-established companies. Smith says he does “not seek to find tomorrow’s winners – rather, to invest in companies that have already won”. His approach is to pick a small selection of resilient, global growth companies that are good value, and stick with them. Only a handful of holdings have been changed since the fund’s inception.

The fund currently holds just 27 companies with 65.5% in the US market. Smith likes big brands with his largest investments including household names such as Microsoft, PayPal and Facebook. He backs his conviction by investing his own money alongside investors.

Other qualities he looks for in companies are a high return on capital and advantages that are difficult to replicate. Smith believes it is virtually impossible to predict which way stockmarkets will move, but that the strength of the companies he holds will allow them to continue to grow their intrinsic value. FundCalibre rates the “extremely competent” manager and regards this fund as a worthy member of a balanced portfolio.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Fundsmith Equity I Acc
Manager
Fundsmith LLP
Type
Open Ended Investment Company
ISIN
GB00B41YBW71
Sector
Global
Launched
01/11/2010
OCF
0.95 %
Risk Rating
2
3 Year Sharpe
0.97
3 Year Alpha
2.06
Yield
0.7 %
Benchmark
MSCI World NR GBP
The investment objective of the SICAV is to achieve long term growth in value. The SICAV will invest in equities on a global basis. The SICAV’s approach is to be a long-term investor in its chosen stocks. It will not adopt short-term trading strategies.
Holding %
Microsoft Corp 6.42 %
PayPal Holdings Inc 5.52 %
Philip Morris International Inc 4.75 %
The Estee Lauder Companies Inc Class A 4.58 %
Facebook Inc A 4.44 %
Amadeus IT Group SA A 4.23 %
Novo Nordisk A/S B 4.16 %
Stryker Corp 4.10 %
McCormick & Co Inc Non-Voting 4.03 %
Intuit Inc 4.01 %
Region %
United States 65.83 %
United Kingdom 17.49 %
Eurozone 10.24 %
Europe - ex Euro 6.45 %
Sector %
Consumer Defensive 31.89 %
Healthcare 24.50 %
Technology 17.56 %
Financial Services 9.41 %
Industrials 9.10 %
Name
Fundsmith LLP
Address
W1G 0PW, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Terry Smith
Joined 11/01/2010

Terry Smith graduated in History from University College Cardiff in 1974. He worked for Barclays Bank from 1974-83 and became an Associate of the Chartered Institute of Bankers in 1976. He obtained an MBA at The Management College, Henley in 1979. He became a stockbroker with W Greenwell & Co in 1984 and was the top-rated bank analyst in London from 1984-89. In 1990 he became head of UK Company Research at UBS Phillips & Drew, a position from which he was dismissed in 1992 following the publication of his best selling book Accounting for Growth. He joined Collins Stewart shortly after, and became a director in 1996. In 2000 he became Chief Executive and led the management buy-out of Collins Stewart, which was floated on the London Stock Exchange five months later. In 2003 Collins Stewart acquired Tullett Liberty and followed this in 2004 with the acquisition of Prebon Group, creating the world's second largest inter-dealer broker. Collins Stewart and Tullett Prebon were demerged in 2006 with Terry remaining CEO of Tullett Prebon until September 2014. In 2010 he founded Fundsmith where he is CEO and CIO. In 2012 he was appointed a Member of the New Zealand Order of Merit for services to New Zealand-UK relations following the success of his campaign to commemorate the New Zealander, Air Marshal Sir Keith Park."

Data provided by Morningstar.

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