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Terry Smith talks big tech, fraud and ESG

One of the UK's best-known managers discusses his portfolio
Terry Smith talks big tech, fraud and ESG
  • Terry Smith, Fundsmith's chief executive and chief investment officer, fields the IC's questions about his portfolio and some of the biggest investment trends of today
  • He shares his views on China, the limits of ESG investment and some of the flagship fund's biggest holdings 

Terry Smith’s investment approach – to buy good companies at sensible prices, and do little or nothing – has paid off richly since the launch of Fundsmith Equity (GB00B41YBW71) around a decade ago. The fund has posted huge gains since launch, putting it ahead of world markets and many rival funds (see chart). Fundsmith Equity has also proved a big hit with investors, amassing more than £23bn in assets so far. Fundsmith has since gone ahead with other offerings, from a sustainable global equity fund to investment trusts in the emerging market and global small-cap space.

While the Fundsmith approach involves notably low portfolio turnover, some changes have taken place in the flagship fund this year. The team exited a longstanding position in Reckitt Benckiser (RB) in November and began buying into a new company, the name of which is yet to be disclosed.

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