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Fund Name SRI Style Product Region Asset Type Launch Date
Fundsmith Sustainable Equity Fund Sustainability Tilt OEIC/Unit Trust Global Equity 01/11/17

Objectives

The Company will invest in equities on a global basis. The Company’s approach is to be a long term investor in its chosen stocks.  It will not adopt short-term trading strategies. The Company has stringent investment criteria which the ACD and Investment Manager adhere to in selecting securities for the Company’s investment portfolio.  These criteria aim to ensure that the Company invests in high quality businesses which in the opinion of the ACD and Investment Manager are those:

  • 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;
  • businesses whose valuation is considered to be attractive.

 

The Company 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 & Mining
  • Oil, Gas and Consumable Fuels
  • Pornography
  • Tobacco

In addition, the ACD and the Investment Manager apply further criteria to screen investments in accordance with the ACD's sustainable investment policy. The ACD evaluates sustainability in the widest sense, taking account not only the companies handling of environmental, social and governance policies and practices but also their policies and practices on research and development, new product innovation, dividend policy and the adequacy of capital investment.

 

 

Fund Size: £688.00m

Total screened & themed / SRI assets: £1122.00m

Total Responsible Ownership assets: £32940.00m

Total assets under management: £36836.00m

As at: 31/07/23

ISIN: GB00BF0V6Q57, GB00BF0V6P41, GB00BK5MT475, GB00BK5MT582, GB00BF0V6P41, GB00BF0V6Q57

Contact: ir@fundsmith.co.uk

Sustainable, Responsible &/or ESG Overview

As long-term investors, ESG has always been an integral part of our investment process. We want to invest in companies that will be around forever and be able to maintain a return on capital well in excess of its cost of capital across this period. If a company were to have a significant negative impact on the environment, communities or other stakeholders in the business then it would be less capable of maintaining its excess return. Hence, we have also incorporated ESG factors in the widest possible sense in our investment process.

 

Our approach is to be a long-term investor in our chosen stocks and our investment strategy is built around a simple 3 step strategy: buy good companies, don’t overpay, and do nothing. We will invest in equities on a global basis and will not adopt short-term trading strategies.

 

For the interests of time and completeness a full description of how we incorporate ESG factors into our investment process please see our Responsible Investment Policy (https://www.fundsmith.co.uk/media/swxplrtk/responsible-investment-policy.pdf) and our Stewardship Report (https://www.fundsmith.co.uk/media/ixubdiog/fundsmith-stewardship-report-2022.pdf).

Primary fund last amended: 19/09/23 01:43

Information received directly from Fund Manager
Please select what you would like to read:

  • Fund Filters

    Sustainability

    Environmental policy

    Sustainability policy

    Limits exposure to carbon intensive industries

    Sustainability theme or focus

    Favours cleaner, greener companies

    Sustainability focus

    Encourage more sustainable practices through stewardship

    Climate Change & Energy

    Nuclear exclusion policy

    Coal, oil & / or gas majors excluded

    Fracking and tar sands excluded

    Arctic drilling exclusion

    Fossil fuel reserves exclusion

    Fossil fuel exploration exclusion - direct involvement

    Fossil fuel exploration exclusion – indirect involvement

    Ethical Values Led Exclusions

    Tobacco and related product manufacturers excluded

    Armaments manufacturers avoided

    Gambling avoidance policy

    Pornography avoidance policy

    Gilts / government bonds - exclude all

    Gilts / government bonds - exclude some

    Governance & Management

    Governance policy

    Avoids companies with poor governance

    UN sanctions exclusion

    Encourage higher ESG standards through stewardship activity

    Fund Governance

    ESG integration strategy

    ESG factors included in Assessment of Value (AoV) report

    Asset Size & Metrics

    Over 50% large cap companies

    Invests mostly in large cap companies

    How The Fund Works

    Limited / few ethical exclusions*

    Negative selection bias

    Focus on ESG risk mitigation

    Significant harm exclusion

    SRI / ESG / Ethical policies explained on website

    All assets (except cash) meet published sustain'y criteria

    Intended Clients & Product Options

    Intended for investors interested in sustainability

    Available via an ISA (OEIC only)

    Fund management company information

    About The Business

    ESG / SRI engagement (AFM company wide)

    Responsible ownership / stewardship policy or strategy (AFM company wide)

    Responsible ownership policy for non SRI funds (AFM company wide)

    Diversity, equality & inclusion engagement policy (AFM company wide)

    Boutique / specialist fund management company

    Vote all* shares at AGMs / EGMs (AFM company wide)

    Integrates ESG factors into all / most fund research

    Resources

    In-house responsible ownership / voting expertise

    Employ specialist ESG / SRI / sustainability researchers

    Use specialist ESG / SRI / sustainability research companies

    Collaborations & Affiliations

    PRI signatory

    Investment Association (IA) member

    Accreditations

    UK Stewardship Code signatory (AFM company wide)

    Engagement Approach

    Engaging on climate change issues

    Engaging on labour / employment issues

    Engaging on governance issues

    Engaging on responsible supply chain issues

    Company Wide Exclusions

    Controversial weapons avoidance policy (AFM company wide)

    Transparency

    Publish full voting record (AFM company wide)

    Publish responsible ownership / stewardship report (AFM company wide)

    Full SRI policy information on company website

  • Sustainable, Responsible &/or ESG Policy:

    The Fundsmith Sustainable Equity Fund (FSEF) 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

     

    In addition, we apply further criteria to screen investments in accordance with our . We evaluate sustainability in the widest sense, taking account not only the companies handling of environmental, social and governance policies and practices but also their policies and practices on research and development, new product innovation, dividend policy and the adequacy of capital investment.

     

    All research is done in-house using data from Bloomberg or reported by the company. We collect any positive or negative qualitative ESG and innovation information and store it in our ESG and innovation Database. We use RepRisk alongside this as a proxy for public sentiment towards companies and absolute impact, and to catch any coverage we may have missed. We record key quantitative ESG data, such as greenhouse gas emissions, employee diversity, board diversity in a separate database and use this as a look-through for our portfolios against a comparable index.

  • Process

    See SRI / Ethical policy

     

  • Resources, Affiliations & Corporate Strategies

    All of our research is done in-house, and we are signatories of the UN PRI and the UK Stewardship code.

    We monitor company news on a daily basis in the morning news, which has pretty detailed coverage of daily news flow. This covers much of the qualitative news. On a monthly basis we look the weighted environmental impact stats and the RepRisk of the portfolio. The RepRisk score, which is a measure of reputational risk from ESG factors, acts as a proxy for absolute impact and covers any news we may have missed.

     

    Tom Boles is Head of Sustainability. The analysts on the Fundsmith Equity Fund and Fundsmith Sustainable Equity Fund are Daniel Washburn, Tom Boles and Frank Diebold who each integrate ESG considerations when analysing a company. As long-term shareholders, we consider this to be an important factor in selecting companies that can sustain a high return on capital.

     

    Julian Robins also does analytic work on the Fundsmith Equity Fund and the Fundsmith Sustainable Equity, while he is also the Head of Research.

     

    Terry Smith is the fund manager and makes all final decisions.

    The firm-wide Responsible Investment policy can be reviewed at: https://www.fundsmith.co.uk/docs/default-source/responsible-investment-policy/responsible-investment-policy.pdf

     

  • Literature

    Fund Holdings

    Voting Record

    Disclaimer

    An English language prospectus for the Fundsmith Sustainable Equity Fund is available on request and via the Fundsmith website and investors should consult this document before purchasing shares in the fund. 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. Fundsmith LLP does not offer investment advice or make any recommendations regarding the suitability of its product. This financial promotion is intended for UK residents only and is communicated by Fundsmith LLP which is authorised and regulated by the Financial Conduct Authority.
Fund Name DS SRI Style Product Region Asset Type Launch Date
Fundsmith Sustainable Equity Fund Sustainability Tilt OEIC/Unit Trust Global Equity

Fund Size: £688.00

Total screened & themed / SRI assets: £1122.00

Total Responsible Ownership assets: £32940.00

Total assets under management: £36836.00

As at: 31/07/23

Sustainable, Responsible &/or ESG Policy:

The Fundsmith Sustainable Equity Fund (FSEF) 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

 

In addition, we apply further criteria to screen investments in accordance with our . We evaluate sustainability in the widest sense, taking account not only the companies handling of environmental, social and governance policies and practices but also their policies and practices on research and development, new product innovation, dividend policy and the adequacy of capital investment.

 

All research is done in-house using data from Bloomberg or reported by the company. We collect any positive or negative qualitative ESG and innovation information and store it in our ESG and innovation Database. We use RepRisk alongside this as a proxy for public sentiment towards companies and absolute impact, and to catch any coverage we may have missed. We record key quantitative ESG data, such as greenhouse gas emissions, employee diversity, board diversity in a separate database and use this as a look-through for our portfolios against a comparable index.

Sustainable, Responsible &/or ESG Process:

See SRI / Ethical policy

 

Resources, Affiliations & Corporate Strategies

All of our research is done in-house, and we are signatories of the UN PRI and the UK Stewardship code.

We monitor company news on a daily basis in the morning news, which has pretty detailed coverage of daily news flow. This covers much of the qualitative news. On a monthly basis we look the weighted environmental impact stats and the RepRisk of the portfolio. The RepRisk score, which is a measure of reputational risk from ESG factors, acts as a proxy for absolute impact and covers any news we may have missed.

 

Tom Boles is Head of Sustainability. The analysts on the Fundsmith Equity Fund and Fundsmith Sustainable Equity Fund are Daniel Washburn, Tom Boles and Frank Diebold who each integrate ESG considerations when analysing a company. As long-term shareholders, we consider this to be an important factor in selecting companies that can sustain a high return on capital.

 

Julian Robins also does analytic work on the Fundsmith Equity Fund and the Fundsmith Sustainable Equity, while he is also the Head of Research.

 

Terry Smith is the fund manager and makes all final decisions.

The firm-wide Responsible Investment policy can be reviewed at: https://www.fundsmith.co.uk/docs/default-source/responsible-investment-policy/responsible-investment-policy.pdf

 

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