An investor who backed the fund at launch with a £20,000 lump sum would now be holding around a £109,000 investment and a small saver funnelling in £100 at launch and each month thereafter would be sitting on more than £32,000. where valuation is compelling,' Hollands added. It is entered on the Financial Conduct Authority's register under registered number 523102. This is because they produce consistent performance from the provision of our everyday necessities and luxuries, and have an ability to grow in a world in which there has been little or no economic growth in contrast to most other sectors of the market. At Fundsmith, we only invest in companies which make high returns on capital employed; convert most or all of their profits into cash; have high profit margins; and which have proved resilient to economic cycles over many decades. It's safe to say Fundsmith Equity is one of, if not the, most popular investment funds available to UK investors,. 'It pays to have a spread of managers so that if one does start to go through a sticky patch, the others can keep your portfolio on the right track. He also likes Loomis Sayles Global Growth Equity fund, whose managing team undertakes its own extensive stock research and rigorous in-house peer review which a focus on analysing barriers to entry, profit margin, top line revenue growth and other factors. But the valuation of such companies has become a subject of concern to investors. Terry Smith, the top performing fund manager, shows why investors should be willing to pay more for quality businesses By Chris Dillow, Paul Derrien and Rachel Winter Chris is 44 and lives with his partner and two children, aged six and eight. Barclays CEO Staley on Securities Division, Impairments Guidance, Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. Under Biden More Able to Compete With China, Says Choyleva, Perfect Storm of Clarity Driving Stocks: BlackRock's Moore, N.J.'s Murphy Optimistic Biden Will Approve NYC Tunnel Work, Carney Sees Big Commercial Opportunity in Net-Zero Emissions. If you have a complaint we will do our best to resolve the issue as quickly as possible. All rights reserved. Governor who offers $1m of own campaign funds, Heathrow hits out at ‘lack of Government action’ after 82% fall in passengers, Chrissy Teigen and John Legend appreciate 'love and support' of fans, Katie Holmes Wore An All-Denim Look With Fashion’s Most Popular Shoe, Masters buzz around Bryson DeChambeau is Tiger-like, A toxic UK-US deal is just as likely under President Biden, Microsoft Outlook users unable to access emails after fault, Coronavirus: 5 million patients needing NHS treatment due to pandemic. 'There isn’t a magic percentage that investors should stick to but I would generally suggest limiting exposure to any single fund to around 10 per cent to 15 per cent of a portfolio. Ban on petrol and diesel cars in 2030 would 'create 30k new jobs', Christmas travel window for students ‘riddled with holes’, Move Over Colin Because M&S Has Launched A Percy Pig Birthday Cake, As an ex-president, Trump could disclose the secrets he learned while in office, Greg Clarke: Tyrone Mings says appointing black FA chairman would be ‘huge step’ but only a first step, Kate Middleton shows off her favourite family photos inside her Kensington Palace living room, I Got A Curly Cut With Highlights & My Hair Looks So Healthy, How every player who left Man City in the summer is faring elsewhere, China leads global auto industry recovery from virus with October sales rising 12.5%, The Apple MagSafe Duo release date may be imminent – here’s why. Scottish Mortgage managers James Anderson and Tom Slater and Lindsell Train's Nick Train have a similar investment approach to Fundsmith, namely buying strong companies with reliable growth prospects and holding them for the long term.