Following The Adviser Centre Monthly Review Meeting on the 29^th March 2017, Fundsmith Equity has been moved to our Established list.  The fund previously featured on our Recommended list.

The fund was launched in 2010 and is managed by a small team, headed by the experienced manager Terry Smith.  The team has established a clearly-defined investment process, resulting in a fund that is characterised as much by the type of companies, sectors and regions in which the team will not invest, as by those areas to which the fund is exposed.

Philosophically, they look to invest in high quality businesses that they believe will compound in value over a period of years.  Given the discipline of the approach, relatively few companies meet their requirements and hence, the portfolio tends to be concentrated, with only 20-30 developed market equity names.  Their long-term investment time horizon and the fund’s low turnover supports this approach, but, inevitably, its risk and return outcome can differ substantially from equity benchmarks.

The fund size has grown materially since its launch and we now believe it is more appropriate to feature it on our Established list.  As at 28^th February 2017, the fund size was £9.8bn.

Our Established list features funds that have reached, or are close to reaching, full capacity in terms of their assets under management.  To see definitions of our three funds lists, Recommended, Established and Positive Watch, please click here.