Fundsmith renames Fundsmith Sustainable Equity Fund to Fundsmith Stewardship Fund

Change of name 

Fundsmith LLP, the fund manager founded by Terry Smith in 2010, confirms that the Fundsmith Sustainable Equity Fund has been renamed Fundsmith Stewardship Fund. 

The new Financial Conduct Authority's Sustainability Disclosure Requirements would have required a change in the fund's investment process to comply. Fundsmith has concluded that this would not have been in the best interests of investors and therefore is required to remove the term ‘Sustainable' from the fund's name.  

All other aspects of the fund will remain the same.

Fundsmith's industry leading sustainability credentials recognised

A research report recently published by Funds Europe has recognised Fundsmith's industry-leading sustainability credentials. The Funds Europe Carbon Impact Research Report for 2024 revealed significant variations in the carbon footprint and sustainability practices among Europe's largest asset management firms, highlighting that Fundsmith LLP leads with the lowest carbon footprint of all surveyed firms.

The report draws on data from 34 European asset managers, collectively overseeing around €32 trillion in assets. It assesses how these firms are addressing decarbonisation and making strides toward net-zero goals. Among the metrics examined are carbon footprint measurements, weighted average carbon intensity (Waci), and sustainability strategies.

Fundsmith leads with an impressive 4.54 tCO2e/€m (metric tons of carbon dioxide per million euros), while some firms reported figures exceeding 200 tCO2e/€m. In addition to its leadership in carbon footprint reduction, Fundsmith is also recognised for its strong commitment to the Science-Based Target Initiative (SBTi). 86% of Fundsmith's portfolio companies have either committed to or established emissions reduction targets in alignment with SBTi, highlighting the firm's focus on transparency and measurable progress.

Terry Smith, Founder and Chief Investment Officer of Fundsmith, commented: 

“I am delighted that Fundsmith's sustainability credentials have been recognised as industry leading by Funds Europe in its Carbon Impact Research Report for 2024. 

Ironically, we had been reviewing the implementation of the FCA's new Sustainability Disclosure Requirements (SDR), and it has become clear to us that for our Fundsmith Sustainable Equity Fund to comply, we would need to alter our investment process. 

We do not believe that a change in the fund's investment process would be in the best interests of investors. Our customers have overwhelmingly confirmed that they support our view, recognising the evidence that the underlying portfolio has excellent sustainability characteristics. We have therefore taken the decision not to adopt the FCA's SDR, which regrettably requires us to remove the term ‘Sustainable' from the fund's name and marketing literature.”

Read the Funds Europe Carbon Impact Research Report for 2024 in full here: 
https://funds-europe.com/?r3d=carbon-impact-research-report&https%3A%2F%2Ffunds-europe.com%2Fcarbon-impact-research-report%2F 

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For further information please contact:
Charlotte Balbirnie
+44 (0)7989 528421 
CBalbirnie@keplercomms.com

Caroline Villiers
+44 (0)7808 585184
CVilliers@keplercomms.com

About Fundsmith
Fundsmith is focused on delivering superior investment performance at a reasonable cost. It was established to be different from its peers so as to achieve a different result in line with Sir John Templeton's axiom that “If you want to have a better performance than the crowd, you must do things differently from the crowd.” The rigorous research process of Fundsmith is central to what we do. We apply exacting standards to potential investments to produce a portfolio of resilient, sustainable businesses with excellent performance. Minimising the costs we incur on behalf of our customers in implementing our strategy also sits at the heart of our philosophy.

Fundsmith was established in 2010 by Terry Smith. The business is owned and controlled by its partners, who have worked closely together over many years, and is headquartered in London with offices in Mauritius and Connecticut, USA. It is structured to survive Terry Smith's demise and continue with the same investment philosophy. All partners of the firm have a significant co-investment in our Funds delivering a clear alignment of interest. Ancillary activities are outsourced to some of the world's leading providers in order to deliver high quality operations whilst allowing the Fundsmith team to focus on the investment analysis and portfolio management and customer care. 
www.fundsmith.com