Fundsmith Equity – HOLD

This fund was downgraded to a Hold in summer 2025, and no longer appears in the Selection

Introduction to the fund

Terry runs this concentrated global equity fund following three simple rules – first, invest in good companies. These will be generating high levels of cash and reinvesting to grow the business and protect their position. Secondly, don’t overpay. Thirdly, do nothing. Terry will hold stocks for as long as rule one stays true, and keeps costs down by only trading when necessary. The fund will have between 25-40 stocks. Having been the darling of the global sector for some time now, the fund has suffered poor performance and subsequent outflows for the past few years. Despite the long-term performance still looking relatively good, we have decided to downgrade this fund to a Hold.

Fund manager

Terry Smith

Terry Smith has become one of the country’s most prominent investors since his fund’s launch in 2010. He graduated in History from University College Cardiff in 1974 and went on to work at Barclays Bank. He then obtained an MBA at The Management College, Henley and became a stockbroker with W Greenwell & Co, later joining Barclays de Zoete Wedd, working as a bank analyst. He subsequently worked at UBS Phillips & Drew and then Collins Stewart, which acquired Tullett Liberty and Prebon Group. Collins Stewart and Tullett Prebon were demerged in 2006 with Terry remaining CEO of Tullett Prebon. In 2010 he founded Fundsmith where he is CEO and CIO.

Fund performance

Documents

Key facts

  • Chelsea rating

    HOLD – please note that this was downgraded in summer 2025

  • Core Selection

    No

  • Chelsea Risk Rating

    6

  • AMC

    1%

  • OCF

    1.04%

  • Unit Type

    Acc and Inc

  • Yield

    –

  • FundCalibre rating

    Elite Rated

How to invest

Once you know where you want to invest, there are a number of ways you can invest:

  • Log in here and process your instruction
  • Call us on 020 7384 7300 to buy over the phone or request an application form
  • Download an application form and post it to us, along with a cheque
Find out more
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Important information

Source: Performance data sourced from FE Analytics (IA universe). Yield figures (per annum), Fund Size data and AMCs/OCFs are as at 23/01/2026 unless otherwise stated.

The performance graph, factsheets and Key Investor Information Document is provided by FEfundinfo, and updated on a daily basis.

Some funds listed are off shore-domiciled and subject to different regulations. Off shore funds typically do not offer investor compensation under the UK Financial Services Compensation Scheme (FSCS).

Performance history extended by FE fundinfo to illustrate the fund’s longer-term record.

Sector rankings calculated from multiple underlying sectors; certain funds remain unranked due to limited comparability.

Funds assigned to an alternative IA sector; sector rankings may differ accordingly.

The information provided is based on our proprietary qualitative and quantitative research. Whilst reasonable efforts have been taken to ensure accuracy, Chelsea Financial Services cannot guarantee that the information is free from errors, omissions, or inaccuracies.

This information does not constitute investment advice and should not be interpreted as a recommendation to invest in any fund listed. Past performance is not a reliable indicator of future returns.

Please read the full Important Notice on page 2 of the FundReview 2025 carefully before making investment decisions.

Whilst every effort has been made to ensure the accuracy of this information, Chelsea Financial Services takes no responsibility for any errors, omissions or inaccuracies contained therein. The funds within the Chelsea Selection are based on our proprietary research, which is both qualitative and quantitative. Please note this is not investment advice, nor does it imply that you should invest in this fund. Past performance is a not a guide to future returns.

To find out more about our Chelsea Risk Rating, please visit our dedicated page.

The AMC (annual management charge) is paid to the fund management company for managing the fund. It is calculated as a percentage of the value of the fund. The AMC is less than the Ongoing Charges Figure (OCF).

The OCF (ongoing charges figure): The cost includes the AMC and other fees such as registration, regulatory, audit and legal fees but does not include transaction costs and performance fees.