Fundsmith [discussion]

A thread dedicated to all things Terry Smith, who is perhaps the UK’s best money manager.

I’ve held his flagship fund in my Sipp for about a decade. While a little more pedestrian returns-wise, it has provided a good counter-balance to my more growth-focused Baillie Gifford funds.

I know @Richard.W’s also a fan.

Fundsmith Equity Fund
The Fundsmith Equity Fund, which is relatively concentrated with 29 holdings, has around £20bn under management, putting it on a par with SMT size-wise.

It has delivered a return of nearly 450% since inception against a sector average of about 167%.

The fund focuses on global large cap equities and is relatively defensive with allocations to consumer staple companies such as ULVR, RB. and PM.

While it’s an open-ended investment company, which Trading 212 cannot yet offer, it can easily be replicated with pies. Here’s the top 10:

Security Weight
MICROSOFT CORP 7.93%
PAYPAL HLDGS INC 6.72%
FACEBOOK INC 4.64%
IDEXX LABORATORIES INC 4.49%
NOVO NORDISK A/S 4.48%
PHILIP MORRIS INTERNATIONAL INC 4.41%
MCCORMICK & CO INC 4.23%
INTUIT INC 4.13%
ESTEE LAUDER COMPANIES INC 3.99%
L’OREAL 3.74%

The full holdings can be found in the latest semi-annual report.

Fundsmith also offers two investment trusts – one for emerging markets and the other for global small/mid caps – which are both on the platform:

Fundsmith Emerging Equities Trust (FEET)

Smithson (SSON)

4 Likes

Fundsmith’s annual meeting’s always a good watch and the yearly letter’s worth a read too.

1 Like

Where are you in this video? On the 1 million invest area? :smiley:

Interesting their view about the global economy, just before the Corona Crash on the markets (until the 23th March floor), the global shutdowns starting on March and the worst GDP numbers on most of the world’s countries.

Wishing that Trading 212 adds soon this type of funds.

2 Likes

Unfortunately, I think it’ll be many years before T212’s able to offer this type of fund. I’d be surprised if it’s even on the current roadmap.

For those wishing to replicate Fundsmith with pies, there are two missing ingredients: Coloplast (CLPBY) and Kone (KNYJY), which make up about 7%. Any chance those two can be made fractional when you get a minute please @David @Martin @PeterA @Rumen? :pleading_face:

It doesn’t cost anything to dream/wish for. :slight_smile:

I already have access to some free fund supermarkets, but only UCITS complaint funds and not UK-domiciled (not anymore).

Since the Brexit referendum, some asset management companies converted their UCITS complaint GB funds to LU/IE funds, but there are UK funds not accessible to the Continental European investors, specially the non-UCITS complaint funds.

By using T212, we could access British financial instruments, a plus for Trading 212 vs. other brokers (mostly non-UK based).

A good selling point for T212 is the access to the British financial markets (financial instruments). An example, is the Investment Trusts already present, like the Baillie Gifford’s Investment Trusts.

It could help attract more investors on T212, not only the Continental Europeans who want British financial instruments but also British investors who want open-ended investment funds (OEIC).

1 Like

We can but hope. I’d imagine funds will become more of a priority when T212 launches a Sipp. Many would be reticent to transfer without access to Fundsmith, Lindsell, Vanguard all-cap etc.

In Fundsmith news, the latest factsheet reveals the fund has added household goods company Church & Dwight and sold its stake in assurance services firm Intertek. Usually, there’s little turnover but Smith recently purchased luxury goods maker LVMH as well.

As an aside, I’ve always liked the ‘our values’ part of the fund’s factsheet, makes me think of Ronseal’s ‘Does exactly what it says on the tin’ advertising slogan:

  • 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
1 Like

I’m starting my SIPP pretty soon and for the long term Fundsmith Equity looks like it’ll be an excellent inclusion :ok_hand:

2 Likes

Hi,

Fundsmith 2021 AGM video available, nothing much else I can find that is up to-date -

Fundsmith TV

regards,