FUNDSMITH EQUITY T
A concentrated, unconstrained portfolio of global equities, held for the long term.
ANNUAL MANAGEMENT CHARGE
Prices as at 01 Dec 2023.
Fund commentary last updated 25 Oct 2022.
Past performance is not an indication of future performance.
Capital at risk.
|Dividends paid||February, August|
|Standard Initial Charge||0%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||1.04%|
|Ongoing Charges Figure||1.04%|
The fund has an investment universe of around 70 names. It is selective because Smith and his team seek those rare companies that can defy the laws of capitalism and sustain a high return on invested capital for many years. Smith invests in ‘good’ businesses whose advantages are difficult to replicate, do not require significant levels of debt to generate returns, are resilient to change thanks to technological innovation and that have an attractive valuation based on free cash flow yield. The target companies also need to be able to generate revenue through a high volume of everyday, repeatable, and predictable events. Smith typically avoids less developed countries and certain sectors such as banks, real estate, and insurers. Stock ideas are sourced through quantitative screening, and company research including Annual Reports & Accounts. The team also meet management, attend conferences, and read industry publications. The final part of the process is to simply sit back and do nothing. They allow the growth and return on capital which companies generate to compound over the long-term. They will only exit a position if they believe the investment case has weakened, such as if the company makes, in their view, a risky acquisition.
The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.
Past performance is not a guide to future performance. View full risk warning