Fundsmith Sustainable Equity Fund - Sicav
€10.56 T Class Acc, 30 Jun 22

Price Data, 30th June 2022

Share Class OCF* Minimum Price
T Class Acc 1.13% EUR 2,000 € 10.56
T Class Inc 1.13% EUR 2,000 € 10.56
R Class Acc 1.64% EUR 2,000 € 10.49
R Class Inc 1.63% EUR 2,000 € 10.49
I Class Acc 1.00% EUR 5M € 10.58
I Class Inc 0.99% EUR 5M € 10.58
CHF I Class Acc 1.00% CHF 6M CHF 9.60
CHF I Class Inc 0.99% CHF 6M CHF 10.61
USD I Class Acc 0.99% USD 6M $ 9.14
USD I Class Inc 0.99% USD 6M $ 9.14
GBP I Class Acc 0.99% GBP 5M £ 10.52
GBP I Class Inc 1.00% GBP 5M £ 10.51

Standing Data

As at 31 May 2022
Portfolio Manager Terry Smith
Launch Dates Euro: 1.3.21 CHF: 1.3.21
Launch Dates USD: 1.3.21 GBP: 1.3.21
Administrator Northern Trust
Auditor Deloitte S.A.
Dealing Daily at 13:00 C.E.T
Dividend Dates On or about 28/2 & 31/8

Key Facts

As at 31 May 2022
Fund Size €207.6m
Est. Gross / Net Yield< 1.15% / 0.02%
7 Day Fund Liquidity> 100%
No. Holdings 25
Average Co. Founded 1937
Median Market Cap €91.9bn

Geographic Split

As at 31 May 2022, by Country of Listing %
US 75.7
Denmark 8.6
France 4.7
UK 3.8
Spain 2.4
Finland 1.5
Cash 3.1

Sector Split

As at 31 May 2022, GICS® Categories %
Healthcare 31.9
Consumer Staples 30.7
Technology 25.1
Consumer Discretionary 4.3
Communication Services 3.3
Industrials 1.5
Cash 3.1

Top 10 Holdings

As at 31 May 2022
Novo Nordisk
McCormick
L'Oréal
Church & Dwight
Johnson & Johnson
Microsoft
Procter & Gamble
Waters
Automatic Data Processing
Estée Lauder

* The OCF (Ongoing Charges Figure) is the total expenses paid by the fund (excluding bank overdraft interest), annualised, against its average net asset value. The OCF will fluctuate as the average net assets and costs change. The OCF is updated following the publication of accounts for the periods ending 30th June and 31st December.

> 7 Day Fund Liquidity is calculated based upon 30% of trailing 20 day average volume.

< Gross Yield reflects the historic dividend income received by the fund in the preceding 12 months before the deduction of all expenses including management fees. Net yield is Gross Yield less the deduction of all expenses including management fees i.e. Gross Yield less the OCF. In both cases we use T Class Shares as reference. Please note that rates would vary for I Class and R Class shares. Additional fund expenses will further reduce the yield received.

Security Identification Codes

Share Class SEDOL ISIN MEXID
T ACC € BMT7K05 LU2289279700 RWABDN
T INC € BMT7K16 LU2289279882 RWABDQ
R ACC € BMT7K27 LU2289279965 RWABDD
R INC € BMT7K38 LU2289280039 RWABDC
I ACC € BMT7K49 LU2289280112 RWABDP
I INC € BMT7K50 LU2289280203 RWABDO
CHF I ACC BMT7K61 LU2289280385 RWABDJ
CHF I INC BMT7K72 LU2289280468 RWABDI
USD I ACC BMT7K83 LU2289280542 RWABDF
USD I INC BMT7K94 LU2289280625 RWABDE
GBP I ACC BMT7KB6 LU2289280898 RWABDH
GBP I INC BMT7KC7 LU2289280971 RWABDG

Investment objective of the SICAV

The Fund is actively managed, which means that the investments are selected at the discretion of the investment manager. The investment objective of the Sub-fund is to achieve long-term growth in value. The Sub-fund will invest in equities on a global basis. The Sub-fund’s approach is to be a long-term investor in its chosen stocks. It will not adopt short-term trading strategies. The Sub-fund has stringent investment criteria which the Investment Manager adheres to in selecting securities for the Sub-fund’s investment portfolio. These criteria aim to ensure that the Sub-fund invests in:

  • high quality businesses that can sustain a high return on operating capital employed;
  • businesses whose advantages are difficult to replicate;
  • businesses which do not require significant leverage to generate returns;
  • businesses with a high degree of certainty of growth from reinvestment of their cash flows at high rates of return;
  • businesses that are resilient to change, particularly technological innovation; and/or
  • businesses whose valuation is considered by the Investment Manager to be attractive.

It is envisaged that the investment portfolio of the Sub-fund will be concentrated, generally comprising between 20 and 30 stocks. The Sub-fund takes sustainability risk and ESG characteristics into account as part of its selection process. In that respect, the Sub-fund promotes environmental and/or social characteristics within the meaning of Article 8 of SFDR. For the assessment, areas like corporate strategy, corporate governance, transparency and the product and service range of a company are taken into account.

In addition to ESG criteria, other sustainability criteria are taken into account in the management of the Sub-fund such the United Nations Principles for Responsible Investment. The Investment Manager’s responsible investment approaches can be summarised as “considering ESG issues when building a portfolio.” and takes into account the following areas – integration, screening and thematic, engagement and proxy voting.

In addition to ESG criteria, the Sub-fund will not invest in businesses which have substantial interests in any of the following sectors:

  • Aerospace and Defence
  • Brewers, Distillers and Vintners
  • Casinos and Gaming
  • Gas and Electric Utilities
  • Metals and Mining
  • Oil, Gas and Consumable Fuels
  • Pornography
  • Tobacco

Principal risks

  • Currency Risk: The fund’s portfolio is a global portfolio and many of the investments are not denominated in Euros. There is no currency hedging made by the fund. The Euro price of the shares may therefore rise or fall purely on account of exchange rate movements.
  • Concentration Risk: The fund’s portfolio complies with the UCITS requirements on spread of investment. Having said that, application of the investment criteria described above significantly limits the number of potential investments: the fund generally invests in 20 to 30 stocks and so it is more concentrated than many other funds. This means that the performance of a single stock has a greater effect on the price of the fund.
  • Operational Risk: Failures or delays in operational processes may negatively affect the fund.
  • Sustainability risk: The Fund is subject to the risk that environmental, social or governance conditions or events may occur that may have a material negative impact on the value of its investments.
  • Risks inherent in the holding of shares: There is no assurance that any appreciation in the value of investments in Shares will occur. The Net Asset Value per Share is expected to fluctuate over time with the performance of the Sub-fund’s investments. A Shareholder may not fully recover his initial investment when he chooses to redeem his Shares or upon compulsory redemption, if the Net Asset Value per Share at the time of such redemption is less than the Subscription Price paid by such Shareholder or if there remain any unamortised costs and expenses of establishing the Sub-fund. An investment in Shares should only be made by those persons who are able to sustain a loss on their investment. The Shares should be viewed as long term investments (at least 5 years).

Performance, % Total Return

  May 2022 2022 to 31.05.22 2021* Inception to
31.05.22
Annualised to
31.05.22
Fundsmith SEF1 -5.0 -13.5 +26.0 +9.0 +7.1
Equities2 -1.4 -7.6 +28.0 +18.3 +14.4
EU Bonds3 -4.1 -19.6 -1.9 -21.2 -17.4
Cash4 -0.0 -0.2 -0.5 -0.7 -0.6

The Fund is not managed with reference to any benchmark, the above comparators are provided for information purposes only. 1 T class € accumulation shares, net of fees priced at midday UK time, source: Bloomberg 2 MSCI World Index (€ Net) priced at close of business US time, source: www.msci.com. The MSCI World Index is a developed world index of global equities across all sectors and, as such, is a fair comparison given the Company's investment objective and policy. 3 Bloomberg/Barclays Bond Indices Euro Govt 10 yr, source: Bloomberg 4 € Interest Rate, source: Bloomberg.  *From 1.3.21.  Past performance is not necessarily a guide to future performance. The value of investments and the income from them may fall as well as rise and be affected by changes in exchange rates, and you may not get back the amount of your original investment.

Portfolio Comment for May 2022

There were no outright sales or purchases of holdings made in the month. The top 5 contributors in the month were Waters, Adobe, Kone, Mettler-Toledo and Unilever. The top 5 detractors were McCormick, Church & Dwight, Procter & Gamble, Coloplast and IDEXX.

Our ratings

Luxflag Label ESG

Past performance does not predict future returns. Returns for periods over one year are annualised. The past performance shown has been calculated using Euros. If the Euro is not your local currency, the returns shown may increase or decrease when converted into your local currency. For fees, refer to the KIID.

Monthly performance table, % Total Return, T Class, EUR, Accumulation Shares

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
2021     +2.0 +2.5 +0.3 +5.2 +4.3 +1.0 -2.8 +2.8 +3.3 +5.1 +26.0
2022 -8.5 -3.2 +2.2 +0.6 -5.0               -13.5

Dividend Payments

Payable on 28th February and 31st August

Name
Share class
    Direct
T Class
Advised
R Class
Institutional
I Class
Institutional
CHF I Class
Institutional
USD I Class
Institutional
GBP I Class
Final 1st Jul 2021 to 31st Dec 2021 Income 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Interim 1st Mar 2021 to 30th Jun 2021 Income 0.0000 0.0000 0.0000 0.0040 0.0004 0.0049