Fundsmith Sustainable Equity Fund I Acc

Global Growth

New for 2020. Decent diversifier for Fundsmith Equity fans      

Fundsmith Sustainable Equity is our wildcard in the Global Growth asset group for 2020 given its short history. The fund has only been going for a couple of years and got off to a comparatively slow start when it launched in November 2017, but has recently mirrored the performance of its much larger sister fund, Fundsmith Equity. It has significantly outperformed the average return of funds in the global sector and Morningstar’s ethical equity funds universe.

The two funds share the same manager in industry stalwart Terry Smith, and both invest in a small number of high quality, well-established companies and hold them for the very long term. Fundsmith Sustainable Equity excludes specific companies and sectors from its investment universe, including aerospace and defence, alcohol, gambling, oil and gas, pornography and tobacco. Fundsmith Equity’s investing tenets would preclude it from investing in many of these sectors too, particularly capital-intensive sectors such as mining – but Philip Morris, the Swiss-domiciled multinational cigarette and tobacco manufacturing company, for example, is among the top 10 of the mainstream equity fund and understandably absent from the sustainable fund.

In running it, Smith also considers other factors, such as companies’ handling of environmental, social and governance policies, and their approach to research and development, new product innovation, dividend payments and the adequacy of capital investment. It is among the ‘considers’ camp of interactive investor’s ACE 30 line-up of rated sustainable funds. Interactive investor recommends it for adventurous investors given the concentrated portfolio of only 24 companies. It could also be used as a decent diversifier for Fundsmith Equity fans who are not bothered about sustainability, particularly because its £300 million size makes it nimbler than its £19 billion sister.

Narrative and ratings content all as of 01 January 2020.

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Name
Fundsmith Sustainable Equity Fund I Acc
Manager
Fundsmith LLP
Type
Open Ended Investment Company
ISIN
GB00BF0V6P41
Sector
Global
Launched
01/11/2017
OCF
1.05 %
Yield
0.4 %
Benchmark
Not Benchmarked
The investment objective of the Company is to achieve long term growth in value.The Company will invest in equities on a global basis. The Company’s approach is to be a long term investor in its chosen stocks. It will not adopt short-term trading strategies.
Holding %
Microsoft Corp 4.74 %
Marriott International Inc Class A 4.52 %
Amadeus IT Group SA A 4.45 %
Novo Nordisk A/S B 4.43 %
Visa Inc Class A 4.39 %
KONE Oyj Class B 4.25 %
McCormick & Co Inc Non-Voting 4.21 %
Coloplast A/S B 4.11 %
The Estee Lauder Companies Inc Class A 4.04 %
Johnson & Johnson 4.04 %
Region %
United States 61.66 %
United Kingdom 16.03 %
Eurozone 13.31 %
Europe - ex Euro 9.01 %
Sector %
Consumer Defensive 28.47 %
Healthcare 28.07 %
Technology 17.35 %
Industrials 12.82 %
Financial Services 8.52 %
Name
Fundsmith LLP
Address
W1G 0PW, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Data provided by Morningstar.

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