Fundsmith has become the first UK fund management company to launch a regulated Lux-based SICAV under the new UCITS IV directive.
Fundsmith has become the first UK fund management company to launch a regulated Lux-based SICAV under the new UCITS IV directive. The Fundsmith Equity Fund Feeder gives investors access to the firm’s Fundsmith Equity Fund via either the offshore channel or the SICAV, whilst ensuring that the costs of running the funds are kept to a minimum as Fundsmith is able to manage a single pool of assets. The offshore fund launched in November 2010 and has returned 12.1 per cent relative to the MSCI World Index which has returned 1.7 per cent. It holds a concentrated portfolio of 20 to 30 resilient global growth stocks which are held for the long term. Fundsmith only charges an AMC of 1 per cent due to its long-term buy and hold investment strategy. An identical AMC will apply to those investors that choose the new SICAV. “We are delighted to come to the market so quickly with our SICAV,” said Fundsmith CEO, Terry Smith. “The UCITS IV directive allowing a master-feeder structure is excellent news for private client managers and offshore investors as it provided us with an efficient solution to allow investors their preferred vehicle whilst maintaining a single pool of assets and low AMC.”
