Overview
- Fundsmith Equity Fund returned 0.8% in 2025 versus 12.8% for the MSCI World Index in sterling with dividends reinvested.
- Management cited index concentration, the growth of passive funds, and a weaker dollar as key drivers of the shortfall.
- During 2025 the fund exited Brown-Forman and PepsiCo and initiated positions in Zoetis, EssilorLuxottica, Intuit, and Wolters Kluwer.
- Fundsmith began rebuilding Intuit after deeming the 2021 Mailchimp acquisition outside Intuit’s competence and overpriced, noting the deal’s underperformance is now reflected in the share price.
- The letter flagged structural headwinds for alcohol and snacks from GLP‑1 drugs, highlighted Philip Morris’s progress in reduced‑risk products, and noted ADP’s sensitivity to a softer U.S. jobs market.