FUNDSMITH

FundRock Management Company, a leading European third-party UCITS Management Company (“ManCo”) and Alternative Investment Fund Manager (“AIFM”), announces the expansion of its relationship with leading fund management company Fundsmith LLP, to now include distribution services.

FundRock enables clients to streamline their operations in a cost-effective manner by offering third-party ManCo and fund distribution services under one roof, complemented by a wide range of fund administration, middle office, banking, depositary and custody services delivered through parent company Apex Group.

In addition to existing ManCo services, FundRock Distribution S.A. will now provide distribution services, enabling Fundsmith LLP to distribute its funds in the EU.

FundRock’s established network of more than 200 experts in key jurisdictions including Luxembourg, the United Kingdom, Ireland, Netherlands, France, Italy, Switzerland, Germany, Abu Dhabi and Singapore delivers significant time, resource and cost benefits.

Arnaud Gérard, CFA, Head of Distribution at FundRock, commented: “FundRock Distribution offers a powerful solution for asset managers, providing local knowledge combined with an established network of contacts, enabling our clients to focus on their core business. We look forward to supporting Fundsmith to distribute their funds more efficiently and effectively in EU markets, while ensuring the highest standards of governance and regulatory compliance.”

Mark Laurence, COO at Fundsmith, commented: “We are delighted to extend our existing relationship with FundRock to help manage our post Brexit EU distribution. In particular it will allow us to target the Italian market through the services of incoming FundRock Sales Director, Giuseppe Bellavia, who joins from Allianz Global Life and has been appointed as Sales Director of FundRock to lead distribution for Fundsmith in Italy.”

About Fundsmith SICAV

Fundsmith SICAV is the umbrella fund for Fundsmith Equity Fund and Fundsmith Sustainable Equity Fund.

Fundsmith Equity Fund, a sub-fund of the Fundsmith SICAV, is managed with exactly the same process as the same-named, largest active equity fund in the UK. Fundsmith Equity Fund offers investors a high quality, concentrated portfolio of 20-30 resilient, global growth companies which are held for the long term.

The Fundsmith Equity Fund takes sustainability risk and ESG characteristics into account as part of its selection process. In that respect, the Fundsmith Equity Fund promotes environmental and/or social characteristics within the meaning of Article 8 of SFDR. Fundsmith Equity Fund is rated Gold by Morningstar and has a four crown FE fundinfo rating.

Fundsmith Sustainable Equity Fund is also an Article 8 fund and it follows the same strategy as Fundsmith Equity Fund but with an important difference, namely the following sectoral exclusions that are stipulated in the fund prospectus:

• No Aerospace and Defence
• No Brewers, Distillers and Vintners
• No Casinos and Gaming
• No Gas and Electric Utilities
• No Metals and Mining
• No Oil, Gas and Consumable Fuels
• No Pornography
• No Tobacco

In addition, investments are screened for 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. Fundsmith Sustainable Equity Fund has a LuxFLAG ESG Label, which has the primary objective to reassure investors that the investment product incorporates ESG criteria throughout the entire investment process while screening 100% of their invested portfolio according to one of the ESG strategies and standards recognised by LuxFLAG.

Terry Smith, Portfolio Manager of Fundsmith Equity Fund and Fundsmith Sustainable Equity Fund, commented: “We will only invest in companies that have attractive valuations, high barriers to entry and are extremely resilient. We like companies with a business advantage that is hard to replicate and which are resilient to change, particularly to technological change. The kind of intangible assets we seek are brand names, high market shares, patents, licenses, distribution networks, installed bases and client relationships. We especially like companies that produce goods which are consumed at short and regular intervals and which sell directly to consumers. A company that sells many small items every day is better able to earn more consistent returns over time than a company whose business is cyclical, like a steel manufacturer, or “lumpy”, like a property developer or which sells items that are expensive and durable like a motor manufacturer."

Terry Smith, founder of Fundsmith, is the portfolio manager of Fundsmith Equity Fund and Fundsmith Sustainable Equity Fund. Terry is well-known for his straight talking and clear three step investment strategy that seeks to buy good companies, not overpay and do nothing.

Since inception of the Fundsmith Equity Fund in the UK in 2010 to the end of October 2022, the fund’s assets have grown to over £22 billion and it has delivered a total return of over 460% or 15.5% annualised, net of fees.

Fundsmith Equity Fund, a sub-fund of the Fundsmith SICAV, has growth its assets under management to over €8bn and it has delivered a total return since its inception in 2011 of over 399.7% or 15.8% annualised, net of fees.

Terry Smith added: “We have grown Fundsmith Equity Fund into the UK’s largest active equity fund, built on our successful strategy of investing in a small number of high quality companies that can be held for the long term. While our strategy is simple, it requires rigorous analysis and strict discipline to deliver superior returns over the long-term at a reasonable cost.

“We established our SICAV in Luxembourg in 2011 and are pleased to have extended our relationship with FundRock so we can actively distribute across the EU, in particular targeting Italy with the expertise of FundRock Sales Director Giuseppe Bellavia.”

FUND FACTS

MINIMUM INVESTMENT: €2,000

CHARGES:
No initial charge
No performance fee
No redemption fees
Annual Management Fee 1%
Estimated OCF – Fundsmith Equity Fund 1.09%
Estimated OCF – Fundsmith Sustainable Equity Fund 1.12%
UNITS: Income or Accumulation

-Ends-

About FundRock Distribution S.A.

FundRock Distribution S.A., a subsidiary of the Apex Group, is authorised by the Luxembourg regulator, the CSSF, to act as investment adviser and distributor of shares/ units of funds. Under this MiFID license, FundRock is able to act as global distributor/sub-distributor of the funds managed by our affiliates. They leverage their free provision of services (passport) through the European Union to offer a long term and stable solution to our clients. FundRock offers a more flexible and economical go to market solution including, streamlined access to fund platforms, fund distribution support and direct representation.

FundRock Distribution S.A. is a subsidiary of FundRock Management Company S.A., a leading independent UCITS management company and AIFM investment fund manager. As of September 2022, FundRock oversees more than 500 funds with a total of €116 billion in assets under management, including Italian domiciled funds. The FundRock group has more than 200 employees in eight countries including Luxembourg, United Kingdom, Ireland, France, Switzerland, Abu Dhabi and Singapore.

www.fundrock.com

About Fundsmith

Fundsmith is focused on delivering superior investment performance at a reasonable cost. It was established to be different from its peers so as to achieve a different result in line with Sir John Templeton’s axiom that “If you want to have a better performance than the crowd, you must do things differently from the crowd.” The rigorous research process of Fundsmith is central to what we do. We apply exacting standards to potential investments to produce a portfolio of resilient businesses with excellent performance. Minimising the costs we incur on behalf of our customers in implementing our strategy also sits at the heart of our philosophy.

Fundsmith was established in 2010 by Terry Smith. The business is owned and controlled by its partners, who have worked closely together over many years, and is headquartered in London with offices in Mauritius and Connecticut, USA. It is structured to survive Terry Smith’s demise and continue with the same investment philosophy. All partners of the firm have a significant coinvestment in our Funds delivering a clear alignment of interest. Ancillary activities are outsourced to some of the world's leading providers in order to deliver high quality operations whilst allowing the Fundsmith team to focus on the investment analysis and portfolio management and customer care.

www.fundsmith.eu
www.fundsmith.eu/fsef/

Fundsmith SICAV is an investment company organised under the laws of the Grand Duchy of Luxembourg as a societé d’investissement à capital variable, is governed by Part I of the UCI Law and qualifies as a UCITS.

Before making any investment decisions, please refer to the Prospectus and Key Investor Information Document (KIID)s in English, Danish, Dutch, French, German, Italian, Norwegian, Portuguese, Spanish and Swedish, available on the Fundsmith SICAV website https://www.fundsmith.eu/documents/.

A summary of your investor rights can be found in English here, https://www.fundsmith.eu/investor-rights. 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.

Issued 1 Sep 2022 within Europe (ex-Switzerland) by FundRock Distribution S.A. (“FRD”) the EU distributor for Fundsmith SICAV. FRD is a public limited company, incorporated under the laws of the Grand Duchy of Luxembourg, registered office at 9A, rue Gabriel Lippmann, L-5365 Munsbach, Luxembourg, and registered with the Luxembourg trade and companies register under number B253257. FRD is authorized as distributor of shares/units of UCIs without making or accepting payments (within the meaning of Article 24-7 of the 1993 Law), as updated from time to time. FRD is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF).

Please note that FundRock Management Company S.A. may decide to terminate the arrangements made for the marketing of the Fund under the denotification process in new Cross-border Distribution Directive (Directive (EU) 2019/1160).

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