Fundsmith Equity Fund Update Webinar - July 2026

Fundsmith Equity Fund’s semiannual update centers on strategic portfolio adjustments driven by a shift away from companies experiencing fundamental deterioration, such as LVMH, Zoetis, and Coloplast. While maintaining the core philosophy of investing in high-quality businesses, the fund acknowledges that a rigid "do nothing" approach previously fostered an unintended endowment bias. The current portfolio prioritizes companies with greater certainty of organic revenue growth, resulting in a 31% return on capital and a 4.3% free cash flow yield. Market volatility, fueled by massive ETF inflows and speculative AI-related capital expenditure, necessitates a more active management stance than in previous years. Despite these changes, the fund rejects momentum-based strategies, instead focusing on fundamental value to outperform the broader index, which currently faces significant valuation pressures from heavy investment in artificial intelligence.