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Terry Smith, CEO, Fundsmith

Fundsmith launches first UCITS IV Luxembourg SICAV feeder fund


Fundsmith is the first UK fund management company to use the recent UCITS IV legislation allowing them to launch a regulated SICAV feeder fund in Luxembourg. 

The Fundsmith Equity Fund Feeder provides investors who prefer to invest offshore, or through a SICAV, access to the Fundsmith Equity Fund whilst ensuring that the costs of running the funds are kept to a minimum as Fundsmith is able to manage a single pool of assets.  

The Fundsmith Equity Fund was launched in November 2010 by Terry Smith. For the past year, the Fund has outperformed by 10.4% delivering a return of 12.1% vs the MSCI World’s 1.7% return. It is the main vehicle for Smith’s own investments, and offers investors the opportunity to invest alongside him in a high quality, concentrated portfolio of 20-30 resilient global growth companies which are held for the long term.  The portfolio has no benchmark or sector constraints. The Fund charges a flat 1% AMC, if bought direct plus minimal trading costs due to Fundsmith’s long term buy and hold investment strategy.

Investing via the SICAV Feeder will incur an identical Annual Management Charge (AMC) as investing directly in the UK OEIC thus preserving the low cost structure.

Smith says:“ We are delighted to come to the market so quickly with our SICAV. The UCITS IV directive allowing a master-feeder structure is excellent news for private client managers and offshore investors as it provided us with an efficient solution to allow investors their preferred vehicle whilst maintaining a single pool of assets and low AMC."

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