Overview
- Fundsmith reported a 0.8% 2025 return for its Equity Fund’s T Class Accumulation shares versus 12.8% for the MSCI World Index in sterling, while noting a 1.7 percentage point annual outperformance since inception.
- The letter attributes 2025 underperformance to index concentration, rising assets in index funds, and currency headwinds from dollar weakness.
- On ADP, Fundsmith said the payroll and HCM provider has been hurt by a soft U.S. jobs market and added it is nervously hoping management’s revenue guidance proves conservative; ADP closed at $266.02 on Jan. 9 with a 52‑week loss of 7.26%.
- On Novo Nordisk, Fundsmith criticized management missteps and the failure to block illegal U.S. generic competition, noted a new CEO and board changes, and said a price‑to‑earnings ratio near 13 reflects low expectations; the shares closed at $58.81 on Jan. 9 after a 30.50% 52‑week decline.
- The fund disclosed it has begun rebuilding a position in Intuit, saying Mailchimp’s underperformance has been recognized in the share price and expressing hope that management has learned from the acquisition.