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Fundsmith Sustainable Equity I

Bestinvest LogoA concentrated portfolio of global stocks that are viewed as sustainable by the manager.

PRICE (INC)

157.98p

PRICE (ACC)

160.4p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.9%

ONGOING CHARGE

0.97%

YIELD

0.1%

1 YEAR
3.75%

Prices as at 24 Jun 2022.

Fund commentary last updated 09 Feb 2022.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to achieve long-term growth by investing in a select group of global equities. Manager Terry Smith looks for quality companies which can sustain high rates of return on capital and whose business model is hard to copy. The companies must also pass Fundsmith’s sustainable screening process, which excludes those with substantial interests in sectors such as oil, tobacco and casinos & gaming. The fund typically has between 20 and 30 stocks in its portfolio, including holdings such as beauty group L’Oreal and tech giant Microsoft. It is very similar to the Fundsmith Equity Fund both in terms of holdings and its ‘buy and hold’ investment strategy. That means Smith looks to invest for the long-term and remains patient during tough market periods.

Fund summary

SectorGlobal
StructureOEIC
LaunchedNovember 2017
Size£675m
Yield0.1%
Charging BasisIncome
Dividends paidFeb & Aug

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.9%
Ongoing Charges Figure0.97%
Equity
Equity
96%
96%
High Yield Bonds
High Yield Bonds
0%
0%
Quality Bonds
Quality Bonds
0%
0%
Property
Property
0%
0%
Commodities
Commodities
0%
0%
Hedge
Hedge
0%
0%
Fund Cash
Fund Cash
4%
4%

Investment Process

The investment process mirrors that of the Fundsmith Equity Fund in that manager Terry Smith looks to ‘buy good companies, don’t overpay and do nothing’. Smith has a bottom-up investment approach, with ideas being sourced through a combination of quantitative screening and other methods such as reading annual company reports. He looks to invest in high quality companies which can sustain a high return on capital, whose advantages are difficult to replicate, which do not require significant leverage to generate returns and have a high degree of certainty of growth from reinvestment of their cash flows. Smith also looks for businesses that are resilient to change, particularly technological innovation, and that have attractive valuations. This approach leads to an investment universe of around 70 ‘good’ companies, from which Smith uses negative exclusion screening to steer away from sectors such as aerospace and defence, metals & mining, casinos & gaming, gas and electric utilities, oil, gas and consumable fuels, brewers, distillers and vintners, pornography, and tobacco. To measure these negative impacts the team looks at a company’s reported numbers and its own ESG database. It also utilises the RepRisk Indicator which assesses the threat of reputational risk from ESG factors.

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