Fundsmith Equity Fund Interim Report 2018

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.

Terry Smith · 2010 · 英国伦敦Quality growth / Concentrated

Interim Performance

Metric	2018 H1 Return	Annualized Return Since Inception
Fundsmith Equity Fund	+7.0%	+19.3%
MSCI World Index	+2.9%	+12.3%
FTSE 100 Index	+1.6%	+7.9%
UK Gilts	-0.4%	+3.9%
Cash	+0.3%	+0.6%

Top Ten Holdings

The report did not disclose the list of top ten holdings.

Major Buys and Sells in the Period

Type	Company	Explanation
New Position	Facebook (FB)	Bought; held at the end of the reporting period.
Sold Out	Dr Pepper Snapple (DPS)	Liquidated due to acquisition by Keurig Green Mountain.
Sold Out	Nestlé (NESN)	Liquidated due to the acquisition of Starbucks product rights.

Fees and Size

Item	Value
Total Fund AUM	Approx. £15.57 billion (all share classes combined)
Ongoing Charges Figure (OCF, T Class Acc)	1.05%
Ongoing Charges Figure (OCF, I Class Acc)	0.95%
Direct Transaction Costs (as % of average assets)	0.07%
Portfolio Turnover (6 months)	16.5%
Active Transaction Costs (6 months)	£2,332,957 (0.02% of AUM)

Manager Commentary Highlights

Strong Performance: The fund outperformed the MSCI World Index by approximately 4 percentage points in the first half of 2018, and outperformed the FTSE 100 Index by even more. The main contributors were Idexx Laboratories (+1.56%), Intuit (+1.09%), Microsoft (+1.06%), Dr Pepper Snapple (+0.90%), and PayPal (+0.83%).
Main Detractors: Philip Morris International (-0.96%), Sage (-0.68%), Novo Nordisk (-0.58%), 3M (-0.52%), and Johnson & Johnson (-0.33%) were the five worst-performing stocks in the period.
Buy and Sell Activity: Sold Nestlé (due to the acquisition of Starbucks product rights) and Dr Pepper Snapple (liquidated due to acquisition); bought Facebook, believing its valuation was in line with the S&P 500 average and it had significant growth potential (growing at approximately 50% per annum at the time).
Cost Control: The portfolio turnover of 16.5% was unusually high, but active transaction costs were only 2 basis points (0.02%), well below the industry average. The manager emphasized that total cost (TCI) is the key metric for evaluating fee efficiency, and the fund's TCI of 1.11% (including transaction costs) is competitive.