- Yield History0.41%
- 3 Year sharpe1.26
- 3 Year alpha2.37
- Distribution Typeaccumulation
- Legal StructureOpen Ended Investment Company
- Fund Size (month end)Open Ended Investment Company
- IA SectorGlobal
- Manager GroupFundsmith
- DomicileUnited Kingdom
Fundsmith Equity has an incredibly strong track record under industry stalwart Terry Smith, which has won it numerous awards.
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 typically holds around 30 companies with around 66% of the portfolio invested in the US market. Smith likes big brands, with his largest investments including Microsoft, Facebook and Phillip Morris. 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 stock markets will move, but that the strength of the companies he holds will allow them to continue to grow their intrinsic value.