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The fund’s objective is to achieve long-term growth by investing in a concentrated portfolio of global equities. The fund’s approach is to be a long-term investor in its chosen stocks and it will not adopt short-term trading strategies. Manager Terry Smith invests in "quality" companies, defined as those able to sustain high rates of return on capital and that pass Fundsmith’s sustainable screening process.
|Dividends paid||Feb & Aug|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.90%|
|Ongoing charges figure||1.05%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
Fund manager Terry Smith has enjoyed a long and successful career in finance. Historically his approach has beaten the market over time, whilst also providing low volatility returns and a degree of protection in falling markets. Performance for this new fund should be aligned to the Fundsmith Equity fund given the small number of stock differences. The new fund seeks to tap into the demand for sustainable investing and we would describe the fund as mid green.
|High yield bonds||0|
Ideas are sourced through quantitative screening, monitoring corporate actions for new companies, and by reading annual reports. Portfolio companies must meet strict investment criteria: 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. These criteria typically lead the fund to have a bias to consumer staples, IT, Industrials and healthcare with little or no exposure to financials. The fund will not invest in the following sectors: Aerospace and Defence, Metals and Mining, Brewers, Distillers and Vintners, Oil, Gas and Consumable Fuels, Casinos and Gaming, Pornography, Gas and Electric Utilities, Tobacco. They are screened out. The fund is unconstrained, will typically include between 20-30 companies and may be susceptible to rising interest rates given its quality growth bias.
|Fund data updated on||16/10/19|
|High yield bonds||0|
As at: 30/08/2019
%Mccormick & Co Inc
%Estee Lauder Companies Inc
%Automatic Data Processing Inc
The fund will not invest in the following sectors: Aerospace and Defence, Metals and Mining, Brewers, Distillers and Vintners, Oil, Gas and Consumable Fuels, Casinos and Gaming, Pornography, Gas and Electric Utilities, Tobacco
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.
|Average monthly relative returns||Bestinvest MRI|
|14/15||15/16||16/17||17/18||18/19||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Smith graduated in History from University College Cardiff in 1974. He worked for Barclays Bank from 1974-83. He obtained an MBA at The Management College, Henley in 1979. He became a stockbroker with W Greenwell & Co in 1984 and was the top-rated bank analyst in London from 1984-89. In 1990 he became head of UK Company Research at UBS Phillips & Drew, a position from which he was dismissed in 1992 following the publication of his book Accounting for Growth. He joined Collins Stewart shortly after, becoming a director in 1996. In 2000 he became chief executive and led the management buy-out of Collins Stewart, which was floated on the London Stock Exchange five months later. Collins Stewart acquired Tullett Liberty in 2003 and Prebon Group in 2004, creating the world's second largest inter-dealer broker. Collins Stewart and Tullett Prebon were demerged in 2006.
Terry Smith has 8.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.42%. During the worst period of relative performance (from December 2010 - February 2011) there was a decline of 7% relative to the index. The worst absolute loss has been 9%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.
|Periods of worst performance|
|Absolute||-9% (August 2018 - December 2018)|
|Relative||-7% (December 2010 - February 2011)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.