The Fundsmith Equity Fund was launched by Terry Smith in 2010. It is a long only global equity fund investing in 20-30 growth companies, with a focus on those that generate revenues through a high volume of every day, repeat, predictable events. Much of the global universe can be immediately screened out given their process, the fund will not invest in cyclical companies or those that require leverage to produce returns. As such, the fund has a structural overweight to consumer defensives, and a zero weight to banks, the majority of other financials and the energy sector.
We like the simplicity of the investment process, and the focus on long term growth and low turnover. There is a clear alignment of interest between the manager and senior partners, who have a significant amount of their wealth invested in the fund.