Fundsmith Equity Fund Recognised With What Investment and Money Observer 2016 Fund Award Wins

Fundsmith Equity Fund Recognised With What Investment and Money Observer 2016 Fund Award Wins 

1 July 2016

The Fundsmith Equity Fund has won the ‘Best Global Equity Fund’ category at the What Investment Unit Trust Awards 2016 and the ‘Global Growth - Best Larger Fund’ category at the Money Observer Awards 2016.


What Investment commented, “Few funds have what might be called a blemish-free track record, but since launch Fundsmith Equity may be one such fund.”


Patrick Connolly, the Head of Communications at Chase de Vere and a judge on the What Investment awards panel, said of Fundsmith’s win, “The investment philosophy of fund manager Terry Smith is simple but effective. He only invests in good-quality large companies that benefit from repeatable earnings. He doesn’t overpay, and then he does nothing.”


Money Observer stated, “Investors have bought into Smith’s simple but effective investment philosophy. Over three years to the end of March, the fund scores top marks in the Investment Association’s global sector for performance and consistency. The fund has returned 62 per cent over the period, comfortably ahead of the sector average of 20 per cent.” 


Fundsmith is one of the most bought funds each month on Money Observer’s sister website Interactive Investor.

Terry Smith, Founder and Chief Executive of Fundsmith, said:


“I am delighted that the Fund’s consistent out-performance and simple investment approach has been recognized by both Money Observer and What Investment. Interestingly, in June, the month in which Brexit was approved by the UK referendum and accompanied by market gyrations and hysteria from many financial commentators, the fund rose over 8%, reinforcing just how resilient our investment strategy is.”


“The average Fundsmith portfolio company was founded in 1912. They have survived two world wars, the Great Depression and the financial crisis of 2008-09, so we are confident that Brexit will not lead to their demise.”

Fundsmith Equity Fund


The Fundsmith Equity Fund offers investors a high quality, concentrated portfolio of 20-30 resilient global growth companies which are held for the long term. Since inception to the 30th June 2016, the fund’s AUM has grown to £7.1bn and it has delivered a total return of 169%.


% Total Return Year to 30th June        2016    2015    2014    2013    2012
Fundsmith Equity Fund                       33.4     19.6      7.3       27.3     10.5

Investment Assoc. Global Sector          5.6       8.5       8.6       19.9     -7.0

Quartile Rank                                      1st       1st       3rd        1st       1st  

Source: Financial Express Analytics Fundsmith Equity Fund is T Class Acc Shares in GBP, net of fees, priced at midday UK time.

The Awards Selection Process 


What Investment selects the nominees for its awards by examining performance over the past year, with a view to how they will perform over the longer term.


Money Observer identifies its award-winners by ranking the trusts according to the following weighted result: 40% for annual net asset value (NAV) performance to 31 January 2016, 30% to 2015, 20% to 2014 and 10% for the overall three-year NAV return to 31 January 2016. Further, to emphasise consistency they favour trusts that have been in the top half of the peer group in each of the past three years.