Fund Factsheet

Price Data as at 28 August 2020

Share Class OCF* Minimum Price p
T Acc £ 1.09% £1,000 115.54
T Inc £ 1.09% £1,000 115.38
I Acc £ 0.98% £5m 144.53
I Inc £ 0.98% £5m 142.59

Standing Data

Since Inception
Portfolio Manager Terry Smith
Inception (I, T Class) 1.11.17/ 1.3.20
AMC (I, T Class) 0.9%/ 1.0%
Registrar SS&C
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 28 Aug 2020
Fund Size £385.3m
Gross Yield / Net Yield< 1.42% / 0.44%
2019 PTR^ 4.8%
7 Day Fund Liquidity> 100%
No. Holdings 24
Average Co. Founded 1936
Average Market Cap £133.5bn
2019 Transaction Costs 0.04%

Geographic Split

As at 28 Aug 2020, By Country of Listing %
US 64.0
UK 11.9
Denmark 6.9
France 5.2
Finland 4.1
Spain 3.6
Cash 4.3

Sector Split

As at 28 Aug 2020, GICS® Categories %
Technology 29.6
Healthcare 27.2
Consumer Staples 24.2
Consumer Discretionary 8.0
Industrials 6.7
Cash 4.3

Top 10 Holdings

As at 28 Aug 2020
Paypal
Microsoft
L'Oréal
Intuit
Johnson & Johnson
McCormick
Stryker
Kone
Idexx
Starbucks

Security Identification Codes

SHARE CLASS SEDOL ISIN MEXID
I ACC £ BF0V6P4 GB00BF0V6P41 FUOWA
I INC £ BF0V6Q5 GB00BF0V6Q57 FUOGA
T ACC £ BK5MT47 GB00BK5MT475 FUAACM
T INC £ BK5MT58 GB00BK5MT582 FUAACL

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

    Since FSEF Launch Simulated Portfolio Prior to FSEF Launch
    Aug 2020 2020 to 28.08.20 2019 2018 Inception to 28.08.20 Annualised to 28.08.20 6.10.14 to 31.10.17 Annualised to 31.10.17
    Fundsmith SEF1 +3.1 +11.2 +23.4 +4.5 +44.5 +13.9 - -
    Simulated2 - - - - - - +100.5 +25.4
    Equities3 +5.1 +4.7 +22.7 -3.0 +26.7 +8.7 +55.0 +15.3
    UK Bonds4 -1.1 +3.8 +3.8 +1.2 +10.1 +3.5 +12.5 +3.9
    Cash5 +0.0 +0.3 +0.8 +0.7 +1.9 +0.7 +1.5 +0.5

    The Fund is not managed with reference to any benchmark. Above are a number of comparisons of the Fund's performance: 1Fundsmith Sustainable Equity Fund I Acc, total return, net of fees priced at midday UK time, in sterling. Inception 1st November 2017. 2Simulated portfolio is based upon a segregated account mandate, dividends reinvested pari passu, ex cash, net of fees. Inception was 6th October 2014, source: Fundsmith LLP.   3MSCI World Index (£ Net) priced at close of business US time. The MSCI World Index is a market capitalisation weighted index of developed world equities and, as such, is a fair comparison given the Company's investment objective and policy. source: www.msci.com. 4Bloomberg/Barclays Bond Indices UK Govt 5-10 yr, source: Bloomberg.   53 Month £ LIBOR Interest Rate, source: Bloomberg.

    Portfolio Comment for August 2020

    There were no outright sales or purchases of holdings made in the month. The top 5 contributors in the month were Marriott, Microsoft, Intuit, Estée Lauder and Starbucks. The top 5 detractors were Becton Dickinson, L'Oréal, Coloplast, Stryker and Unilever.

    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.

    * 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 is updated following the publication of accounts for the periods ending 30th June and 31st December. ^ The PTR (Portfolio Turnover Ratio) has been calculated in accordance with the methodology laid down by the FCA. This compares the total share purchases and sales less total creations and liquidations with the average net asset value of the fund. > 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.

    © 2020 Fundsmith LLP. All rights reserved. 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.

    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 -2.5 -3.6 +3.8 +6.1 +1.8 +3.4 +2.9 +0.0 -5.8 +4.3 -6.4
    2019 +2.2 +4.8 +5.7 +2.2 +1.4 +4.6 +4.4 +0.2 -3.4 -2.6 +1.8 +0.4
    2020 +2.6 -6.6 -3.8 +8.5 +6.6 +0.5 +0.6 +3.1
    Simulated return prior to 31.10.17

    Disclaimer: A Key Investor Information Document and an English language prospectus for the Fundsmith Equity Fund are available via the Fundsmith website or on request and investors should consult these documents before purchasing shares in the fund. Past performance is not necessarily a guide to future performance. The value of investments and the income from them may fall as well as rise and be affected by changes in exchange rates, and you may not get back the amount of your original investment. Fundsmith LLP does not offer investment advice or make any recommendations regarding the suitability of its product.

    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.

    MSCI World Index is the exclusive property of MSCI Inc. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or final products. This report is not approved, reviewed or produced by MSCI. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor’s and “GICS®” is a service mark of MSCI and Standard & Poor’s.

    © 2020 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.