Fund Aim

The Company's investment policy is to invest in companies which, in the opinion of the Investment Manager, have the majority of their operations in, or revenue derived from, Developing Economies and which provide direct exposure to the rise of the consumer classes in those countries.The Investment Manager intends to find companies which make their money by a large number of everyday, repeat, relatively predictable transactions. Its strategy is to not overpay when buying the shares of such companies and then do as little dealing as possible in order to minimise the expenses of the Company, allowing the investee companies' returns to compound for Shareholders with minimum interference.
The Investment Manager will avoid the financial sector and heavily cyclical sectors such as construction and manufacturing, utilities, resources and transport, and will instead focus almost exclusively on consumer stocks and in any event only on stocks in companies which will benefit from the rise of the consuming class in the Developing Economies.
The companies in which the Company will seek to invest have relatively predictable revenues and low capital intensity, and correspondingly high returns on capital. The targeted companies will also deliver most or all of their profits in cash. They will have defensible and strong market positions, typically derived from a combination of brands, trademarks and distribution systems or networks. The Investment Manager believes this combination will deliver compound growth in shareholder value over the long term.
The Investment Manager is also cognisant of the additional risks of investing in Developing Economies as opposed to developed economies, both in terms of the countries in which the companies operate and the standard of corporate governance within the companies themselves. The Investment Manager will take into account the degree of economic freedom, particularly the measure derived by the Heritage Foundation, of the country in which the companies are listed and/or operate in assessing the risks of any particular opportunity.
Approximately a third of the companies in which the Company may invest are quoted subsidiaries or franchisees of the multinational companies which may be invested in by the Investment Manager's existing fund, Fundsmith Equity Fund. This means the Investment Manager is well placed to conduct due diligence and assess the corporate governance of these companies.

Performance Overview, % Return

Jan 20182018 to 31.12017201620152014*Since Inception to 31.01.18 Annualised to 31.01.18
FEET NAV1-3.7-3.7+21.2+12.0-7.0+0.1+21.8+5.6
FEET Share Price-4.1-4.1+24.5+10.5-10.9+7.2+26.0+6.6
UK Bonds3-2.0-2.0+1.4+6.5+1.0+7.4+14.8+3.9

1Starting NAV 995.5  2MSCI Emerging & Frontier Markets Index, £ Net (source: www.msci.com)   3Bloomberg/Barclays Bond Indices UK Govt 5-10yr (source: Bloomberg)  4Month £ LIBOR Interest Rate (source: Bloomberg)  *From 25.6.14 

Portfolio Comment for January 2018

We sold our holding in Kimberly-Clark de Mexico as the business is clearly struggling to generate any significant growth. The top 5 contributors in the month were Mr Price, Famous Brands, Mercadolibre, Foshan Haitian and British American Tobacco. The top 5 detractors were Emami, Philippine Seven, Vietnam Diaries, Marico and Eicher Motors.

    Top 10 Holdings

    • Eastern Tobacco
    • Britannia Industries
    • Godrej
    • Vietnam Dairies
    • Foshan Haitian
    • Vitasoy
    • Hypermarcas
    • Marico
    • Emami
    • Travelsky

    Our Values

    • Same Fund Manager
    • Same Unique Investment Process
    • Same No Nonsense 
    • Same Discipline
    • Same Sectors
    • Same Methodology
    • Same Inactivity
    • Same Total Alignment of Interests
    • Same High Conviction

    Monthly Performance Table, % Total Return, T Class, Accumulation Shares


    Dividend Payments, payable on 28th February and 31st August


    Fundsmith LLP ("Fundsmith") is authorised and regulated by the Financial Conduct Authority and only acts for the funds to whom it provides regulated investment management and transaction arrangement services. Fundsmith does not act for or advise potential investors in connection with acquiring shares in Fundsmith Emerging Equities Trust plc and will not be responsible to potential investors for providing them with protections afforded to clients of Fundsmith. Prospective investors are strongly advised to take their own legal, investment and tax advice from independent suitably qualified advisers. The value of investments may go up as well as down. Past performance is not a guide to future performance.

    © 2017 Fundsmith LLP. All rights reserved. The financial promotion on this Site is communicated by Fundsmith LLP. Fundsmith LLP is authorised and regulated by the Financial Conduct Authority. It is entered on the Financial Conduct Authority's register under registered number 523102. Fundsmith LLP is a limited liability partnership registered in England and Wales with number OC354233. Its registered office address is 33 Cavendish Square, London, W1G 0PW.