Fund Factsheet

Price Data as at 31st January 2018

Share Class Est. OCF# Minimum Price p
I Acc £ 1.01% £5m 102.08
I Inc £ 1.01% £5m 102.09

Standing Data

Since Inception
Portfolio Manager Terry Smith
Strategy / Fund Inception 6.10.14 / 1.11.17
AMC 0.9%
Administrator DST
Auditor Deloitte
Dealing Daily at noon
Dividend Dates On or about 28/2 & 31/8
Depository State Street Trustees Ltd
Structure OEIC

Key Facts

As at 31 January 2018
Fund Size £35.9m (£110.9m in strategy)
Est. Gross Yield / Net Yield< 1.60% / 0.55%
7 Day Fund Liquidity> 100%
No. Holdings 26
Average Co. Founded 1925
Average Market Cap £83.9bn

Geographic Split

As at 31 January 2018, By Country of Listing %
US 50.2
UK 19.6
Denmark 6.4
Switzerland 4.9
Spain 4.4
France 4.0
Finland 3.9
Cash 6.6

Sector Split

As at 31 January 2018, GICS Categories %
Consumer Staples 29.6
Healthcare 24.7
Technology 23.6
Industrials 11.6
Consumer Discretionary 3.9
Cash 6.6

Top 10 Holdings

As at 31 January 2018
Nestle
Intuit
Reckitt Benckiser
Amadeus
Becton Dickinson
Intertek
Idexx
Microsoft
L'Oreal
Waters

Security Identification Codes

SHARE CLASS SEDOL ISIN MEXID
I ACC £ BF0V6P4 GB00BF0V6P41 FUOWA
I INC £ BF0V6Q5 GB00BF0V6Q57 FUOGA

# The OCF (Ongoing Charges Figure) is the total expenses paid by the fund (excluding bank overdraft interest), annualised, against its average net asset value. The OCF will fluctuate as the average net assets and costs change. The OCF at launch is estimated for the year ending 31st Dec 2018.
> 7 Day Fund Liquidity is calculated based upon 30% of trailing 20 day average volume. < Gross Yield reflects the historic dividend income received by the master fund in the preceding 12 months before the deduction of all expenses including management fees.>
Net yield is Gross Yield less the deduction of all expenses including management fees i.e. Gross Yield less the OCF.

Fund Factsheet

Investment Objective

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. The Company has stringent investment criteria which the ACD and Investment Manager adhere to in selecting securities for the Company’s investment portfolio.  These criteria aim to ensure that the Company invests in high quality businesses which in the opinion of the ACD and Investment Manager are those: 

  • high quality businesses that can sustain a high return on operating capital employed;
  • businesses whose advantages are difficult to replicate;
  • businesses which do not require significant leverage to generate returns;
  • businesses with a high degree of certainty of growth from reinvestment of their cash flows at high rates of return;
  • businesses that are resilient to change, particularly technological innovation;
  • businesses whose valuation is considered to be attractive.

Investors should be aware that the application of these investment criteria significantly limits the number of potential investments for the Company's portfolio. It is envisaged that the investment portfolio will be concentrated, generally comprising between 20 and 30 stocks. The Company will not invest in businesses which have substantial interests in any of the following sectors:

• Aerospace and Defence
• Brewers, Distillers and Vintners
• Casinos and Gaming
• Gas and Electric Utilities
• Metals and Mining
• Oil, Gas and Consumable Fuels
• Pornography
Tobacco

In addition, the ACD and the Investment Manager apply further criteria to screen investments in accordance with the ACD's sustainable investment policy. The ACD evaluates sustainability in the widest sense, taking account not only the companies handling of environmental, social and governance policies and practices but also their policies and practices on research and development, new product innovation, dividend policy and the adequacy of capital investment.


  • high quality businesses that can sustain a high return on operating capital employed;
  • businesses whose advantages are difficult to replicate;
  • businesses which do not require significant leverage to generate returns;
  • businesses with a high degree of certainty of growth from reinvestment of their cash flows at high rates of return;
  • businesses that are resilient to change, particularly technological innovation;
  • businesses whose valuation is considered by the Master Fund to be attractive.
  • high quality businesses that can sustain a high return on operating capital employed;
  • businesses whose advantages are difficult to replicate;
  • businesses which do not require significant leverage to generate returns;
  • businesses with a high degree of certainty of growth from reinvestment of their cash flows at high rates of return;
  • businesses that are resilient to change, particularly technological innovation;
  • businesses whose valuation is considered by the Master Fund to be attractive.
  • Performance, % Total Return

    Jan 2018 2018 to 31.1 2017 2016 2015 2014* Inception to 31.01.18 Annualised to 31.01.18
    Fundsmith Sustainable Equity1 +1.3 +1.3 +26.0 +29.8 +11.4 +10.9 +104.7 +24.1
    Equities3 +0.1 +0.1 +11.8 +28.2 +4.9 +4.8 +57.8 +14.7
    UK Bonds4 -2.0 -2.0 +1.4 +6.5 +1.0 +4.3 +11.4 +3.3
    Cash5 +0.0 +0.0 +0.4 +0.5 +0.6 +0.1 +1.6 +0.5

    1Simulated return prior to 31.10.17: total return ex cash, dividends reinvested pari passu, net of fees priced at midday UK time, in sterling 3MSCI World Index (£ Net) priced at close of business US time   4Bloomberg/Barclays Bond Indices UK Govt 5-10 yr   53 Month £ LIBOR Interest Rate *From 6th October 2014 


    Portfolio Comment for January 2018

    During the month we received a takeover bid/merger proposal from Keurig Green Mountain for Dr Pepper Snapple and began buying a new holding, the name of which will be revealed if and when we are able to assemble our target position. The top 5 contributors in the month were Dr Pepper Snapple, Idexx, Paypal, Becton Dickinson and Waters. The top 5 detractors were Nestle, Sage, Colgate, Pepsico and Intertek.


    Our Values

    • No Fees for Performance
    • No Up Front Fees
    • No Nonsense
    • No Debt or Derivatives
    • No Shorting
    • No Market Timing
    • No Index Hugging
    • No Trading
    • No Hedging
    • Fundsmith Knows

    Just a small number of high quality, resilient, global growth companies that are good value and which we intend to hold for a long time, and in which we invest our own money.



    For professional investors only. The past performance shown prior to November 2017 is based on simulated returns of a more concentrated segregated account run for a single client adjusted to show total return, ex cash with dividends reinvested pari passu. Simulated past performance is not a reliable indicator of future performance, in particular the segregated account was more concentrated than will be permissible for the Fundsmith Sustainable Equity Fund. The value of investment and the income from them can fall as well as rise. You may not get back the amount originally invested. This document has been issued and approved by Fundsmith LLP which is authorised and regulated by the Financial Conduct Authority. 

    Monthly Performance Table, % Total Return, I Class, Accumulation Shares

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
    2014 +5.5 +4.9 +0.2
    2015 +2.7 +1.0 +1.4 -1.3 +1.9 -6.0 +6.3 -3.4 +0.3 +3.5 +2.3 +2.6
    2016 +1.6 +2.9 +2.9 -1.0 +1.9 +11.4 +3.3 +1.3 +1.9 +1.1 -4.4 +4.4
    2017 -0.2 +6.7 +2.4 +2.4 +6.2 -1.8 +1.0 +3.2 -2.7 +5.9 -1.1 +1.8
    2018 +1.3
    Simulated return prior to 31.10.17

    Equity Fund Facts Archive

    2018 Factsheets

    2017 Factsheets

    © 2017 Fundsmith LLP. All rights reserved. The financial promotion on this site is communicated by Fundsmith LLP. Fundsmith LLP is authorised and regulated by the Financial Conduct Authority. It is entered on the Financial Conduct Authority's register under registered number 523102. Fundsmith LLP is a limited liability partnership registered in England and Wales with number OC354233. Its registered office address is 33 Cavendish Square, London, W1G 0PW.