Fundsmith is the fund firm Terry Smith ("Britain's Warren Buffett") founded in 2010, with a discipline of radical simplicity — Buy Good Companies, Don't Overpay, Do Nothing: a concentrated book of 20-30 high-ROCE global consumer, healthcare and tech franchises with near-zero turnover. His annual shareholder letters are famous for wit and common sense; peak AUM topped £25bn.
This is the 2012 annual report for the Fundsmith Equity Fund. Manager Terry Smith uses a simple strategy: buy high-quality companies and hold them for years. In 2012, the fund returned 12.5% (beating the stock market average by 1.1%). The companies he owns earn an average return on capital (a measure of profit efficiency) of 32%, versus about 20% for typical companies. He traded only 0.48% of the portfolio all year — almost no buying and selling. For ordinary investors, this shows that picking good businesses and staying patient can work well. The report is worth reading because it explains a clear, low-hassle approach using familiar names like Microsoft, Nestlé, and Domino's Pizza.
2012年基金回报12.5%，跑赢MSCI World基准1.1个百分点。本期新建仓Domino's Pizza等五只股票，清仓SGS（因估值过高），组合平均ROCE达32%，远高于市场约20%的水平。
T Class Accumulation Shares, Total Return (in GBP)
| Metric | Fund | Benchmark (MSCI World Index £) |
|---|---|---|
| 2012 | 12.5% | 11.4% |
| From Inception (1 Nov 2010) to 31 Dec 2012 | 29.4% | 14.8% |
| Annualised (Since Inception) | 12.6% | 6.6% |
As of 31 December 2012, in order disclosed in the report
| Rank | Company | 2012 Weight | 2011 Weight |
|---|---|---|---|
| 1 | Dr Pepper Snapple | 5.60% | - |
| 2 | Becton Dickinson and Company | 5.39% | 4.82% |
| 3 | Reckitt Benckiser | 5.60% | - |
| 4 | L'Oreal | 5.34% | - |
| 5 | Stryker | 5.28% | 5.05% |
| 6 | Intercontinental Hotels | 5.30% | 4.84% |
| 7 | Imperial Tobacco | 5.24% | 4.81% |
| 8 | Nestle | 5.30% | - |
| 9 | Domino's Pizza | 5.18% | - |
| 10 | Microsoft | 5.17% | 4.79% |
Note: 2011 weights are from the disclosed top ten holdings of 2011; companies not appearing in that list are denoted by '-'.
| Item | Data |
|---|---|
| Total Net Asset Value (AUM) | £836,353,359 (approximately £836 million) |
| Ongoing Charges Figure (OCF) Range | T Class 1.16%, R Class 1.66%, I Class 1.06% |
| Turnover Rate (2012) | 0.48% |
| Historical Dividend Yield | 2.3% |
| Expected Dividend Yield | 2.5% |