Fundsmith has generated a lot of interest lately (see this thread) and i have a friend who contacted VIAC to know if there would be any possibility to add funds such as Smithson or the Fundsmith Equity Fund to their list of fund.
VIAC’s answer was that they are open to new funds but mainly focus on passive one with low cost. However, if there is a strong demand for a specific fund from clients, they might include them.
This forum is the perfect place to federate such a a demand!
Now I know that active funds are very often not a good idea, but I strongly believe that Fundsmith is an exception and it is worth paying the fees for their performance.
To sum things up:
- The two funds I would be interested in are:
- The Fundsmith Equity Fund, a mutual fund focused on global big caps, created in 2010
- The Smithson Investment Trust PLC, an investment company focused on global Middle and Small caps, created in 2018
- Both funds have an outstanding track record. The Fundsmith Equity Fund has performed, after fees, 16.7% per year in GBP. If you take into account the Fx effects of GBP against CHF, this would be around 14% per year in CHF.
- Both have been very solid during periods of turmoil:
- while the S&P 500 lost 25% year to date, FEF lost only 7.9% (in GBP. For a Swiss investor it would be closer to -14%, still a very good outperformance)
- in 2018, while most funds and indices lost money (especially during the harsh second half of the year), Fundsmith generated positive results
- They generated this performance without leverage nor using derivatives, only by buying shares for the long term
- If you want to have more details about their philosophy, you can read their Owner’s manual
All of this to say that i am a strong supporter of these managers and already invested with them.
Who would be interested to have Fundsmith funds available in VIAC?
EDIT: You may think that Terry Smith (the fund manager) was lucky to operate after the 2008 crisis. But before Fundsmith, he was in charge of the Tullett Liberty Pension Fund, where he averaged 14% per year in spite of the subprime crisis.
EDIT2: If you are curious to ask why i think Fundsmith is going to outperform, see [this other post] (Active investors on the forum).