Fundsmith

What Fundsmith does

Fundsmith is a London-based, privately held active investment management firm founded in 2010 by Terry Smith, often dubbed the 'English Warren Buffett'. The firm manages approximately £24bn in total assets (as of February 2026) across a concentrated portfolio of global equities, with the flagship Fundsmith Equity Fund holding £12.7bn in 25-30 high-quality businesses as of May 2026. The investment philosophy is fundamentally-driven, buy-and-hold, and explicitly rules out shorting, hedging, market timing, leverage, derivatives, and performance fees. Portfolio characteristics include 88% Active Share versus MSCI World, 0.02% annual portfolio turnover, and 70.6% US-listed geographic exposure.

The product suite includes the flagship Fundsmith Equity Fund (UK OEIC), the Fundsmith Stewardship Fund (ESG-screened equity), the Smithson Equity Fund (small and mid-cap, converted from a closed-end trust in February 2026), the NYSE-listed Fundsmith Equity ETF (ticker: ETFT, launched December 2025), the Fundsmith SICAV (EU), and a feeder fund in Mauritius. The firm generates revenue exclusively through Ongoing Charges Figure (OCF) management fees, priced at 1.04% (T Class), 1.54% (R Class), and 0.94% (I Class, £5m minimum), with no performance fees, no upfront charges, and no switching fees. Distribution is omnichannel: direct-to-consumer via the firm website, through 50+ UK wealth platforms (Hargreaves Lansdown, Interactive Investor, AJ Bell, Barclays, etc.), financial advisers, Allfunds in Europe, the new NYSE ETF, and a mobile app for iOS and Android.

Recent strategic positioning reflects both growth and headwinds. The firm has expanded internationally with a US ETF launch (December 2025) and the Smithson OEIC conversion (February 2026), supported by long-tenured operational partners including SS&C Technologies (15-year relationship), State Street Trustees, Deloitte, and BNY Mellon/Pershing. However, the flagship fund posted +0.8% in 2025 versus MSCI World's +12.8%, marking the fifth consecutive year of benchmark underperformance and triggering £6.5bn of net redemptions, the heaviest outflows among active global equity funds. Fundsmith LLP, authorised and regulated by the FCA (number 523102), operates as a founder-owned limited liability partnership with 11-50 employees, generating revenue through a predictable asset-based fee model on a multi-billion-pound AUM base.

Name

Fundsmith

Legal name

Fundsmith LLP

Website

https://fundsmith.co.uk

Company type

Private

Founded year

2010

Operating status

Operating

Headcount range

11–50 employees

Short description

Fundsmith is a London-based active investment management firm founded by Terry Smith in 2010, managing approximately £24bn across concentrated global equity funds for UK, US, EU, and international retail and institutional investors, earning revenue through asset-based management fees.

Ownership category

akta.pro rank

Product category

Active Equity Fund Management

NAICS

Portfolio Management and Investment Advice (52394), Open-End Investment Funds (525910)

SIC

Investment Advice (6282)

akta.pro primary industry

Money Market Funds (FSAAAEAC)

Keywords

• Active equity fund management
• Global equity investing
• Wealth management services
• Investment management
• Concentrated equity funds

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Management Fees (OCF): Fundsmith generates revenue through Ongoing Charges Figure (OCF) fees levied on fund assets under management. The Fundsmith Equity Fund charges 1.04% OCF for T Class shares, 1.54% for R Class, and 0.94% for institutional I Class shares. No performance fees are charged. As of May 2026, the Fundsmith Equity Fund had £12.7 billion in assets under management.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels8 records

Core offering

Fundsmith is an investment management firm that manages a concentrated portfolio of global equity funds, primarily investing in 20-30 high-quality businesses with sustainable competitive advantages. The firm's flagship Fundsmith Equity Fund follows a long-term buy-and-hold philosophy ('Buy good companies, don't overpay, do nothing') and generates revenue through ongoing charges (OCF) on assets under management.

Product overview

Fundsmith is an investment management firm offering a portfolio of equity funds and related financial products. The core offerings include the Fundsmith Equity Fund (flagship global equity fund), Fundsmith Stewardship Fund (ESG-focused equity fund), and Smithson Equity Fund (small and mid-cap fund). The firm has expanded internationally with the Fundsmith Equity ETF (US-listed) and Fundsmith Sustainable Equity Fund (EU/SICAV structure). A mobile app provides account management for all funds. Fundsmith also publishes Terry Smith's book 'Investing for Growth'. The funds are distributed through multiple share classes (T, R, I) with different fee structures and minimum investment requirements.

Differentiator

Problem solved

Functional benefit

Products and services

• Fundsmith Equity Fund The flagship global equity OEIC (UCITS) fund managed by Terry Smith, investing in 20-30 high-quality companies with sustainable competitive advantages and strong fundamentals using a long-term buy-and-hold approach. Available to UK retail investors through T, R, and I share classes with £1,000 or £5 million minimum investments.
• Fundsmith Stewardship Fund An equity fund with ESG/sustainability focus that applies environmental and social screening criteria while maintaining Fundsmith's investment philosophy of buying good companies at attractive valuations for long-term holding.
• Smithson Equity Fund An open-ended equity fund focused on small and mid-cap companies with superior operating numbers, managed by Simon Barnard as Lead Portfolio Manager. Launched in February 2026 following the conversion of Smithson Investment Trust.
• Fundsmith Equity ETF A US-listed ETF on the New York Stock Exchange (ticker: ETFT) that brings Fundsmith's concentrated equity investment strategy to US retail investors, investing in high-quality, resilient companies with strong fundamentals.
• Fundsmith Sustainable Equity Fund (SICAV) A sustainable equity fund available in the EU market through the Fundsmith SICAV structure, focused on companies meeting sustainability criteria while maintaining the core Fundsmith investment philosophy.
• Fundsmith Global Equity Fund Feeder (Mauritius) A feeder fund available in Mauritius that feeds into the main Fundsmith Equity Fund, allowing international investors access to the strategy through a local fund structure.

Quantifiable outcome

• Annualised return of +13.2% since inception (1 Nov 2010) to 29 May 2026, outperforming MSCI World Index at +12.5% annualised over the same period.
• +3 more outcomes

Segments3 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Ten partnerships are on record, tiered core, major and minor.

• SS&C TechnologiescoreTechnology or Integration · 2 December 2025SS&C provides fund administration, accounting, compliance, legal, distribution, trading and capital markets services to Fundsmith. The partnership was extended to support the launch of the Fundsmith Equity ETF in the US market. This represents a 15-year relationship between the two firms.
• State Street Trustees LtdcoreOthersState Street Trustees Ltd serves as the depositary for the Fundsmith Equity Fund, providing custody and oversight services as required under UCITS regulations.
• Deloitte LLPcoreOthersDeloitte LLP serves as the auditor for the Fundsmith Equity Fund, providing independent audit services.
• Hargreaves LansdownmajorChannel Partner/ Reseller/ DistributorOne of the largest UK wealth management platforms distributing Fundsmith funds to its client base of direct investors.
• Interactive InvestormajorChannel Partner/ Reseller/ DistributorMajor UK investment platform distributing Fundsmith funds to its customers.
• AJ BellmajorChannel Partner/ Reseller/ DistributorUK investment platform that has produced multiple video interviews with Terry Smith discussing Fundsmith's investment approach and portfolio positioning.
• BarclaysmajorChannel Partner/ Reseller/ DistributorMajor UK bank and wealth management platform distributing Fundsmith funds.
• AllfundsmajorChannel Partner/ Reseller/ DistributorEuropean fund distribution platform enabling access to Fundsmith funds for advisers and institutional investors.
• Pershing (BNY Mellon)majorChannel Partner/ Reseller/ DistributorPrime brokerage and custody platform supporting Fundsmith's operations and distribution.
• Winterflood SecuritiesminorChannel Partner/ Reseller/ DistributorUK broker and distribution partner enabling access to Fundsmith funds.

Scale indicators14 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• M&G Investments: Major UK asset manager offering a broad range of active equity funds distributed through UK platforms. Overlaps with Fundsmith in UK retail active equity offerings, though at much larger scale and product breadth.
• Schroders: One of the UK's largest listed asset managers offering active equity, multi-asset, and alternatives strategies. Overlaps with Fundsmith in active global equity strategies and UK wealth platform distribution, though at much greater scale and breadth.
• Legal & General Investment Management: Large UK asset manager with significant index/passive and active equity offerings. Serves as both a competitor in UK active equity and a key wealth platform distribution partner via platforms like Hargreaves Lansdown.
• Rathbones: UK wealth manager and asset manager offering investment management services to private clients and advisers. Comparable to Fundsmith in the advised retail channel and UK wealth platform distribution, though with a broader multi-asset proposition.

Direct peers

• Blue Whale Capital: UK boutique active equity manager with a concentrated, quality-growth focused strategy. Direct competitor in the UK advised and wealth-platform distribution channel for global equity mandates.
• Polar Capital: London-based specialist active equity manager offering concentrated, conviction-driven funds across global and thematic strategies. Comparable in scale and boutique character to Fundsmith, with similar UK wealth platform distribution.
• Jupiter Asset Management: UK-listed active asset manager with flagship global equity strategies and a strong UK retail distribution footprint through wealth platforms. Direct competitor in the UK active equity space with similar target customer base.
• Baillie Gifford: Edinburgh-based active equity manager with global and regional strategies targeting long-term capital growth. Both firms share a focus on quality growth investing, low turnover, and UK retail/institutional distribution.
• Stewart Investors: Subsidiary of First Sentier Investors offering sustainable global and Asia-Pacific equity strategies. Comparable to Fundsmith Stewardship Fund with quality-growth focus and long-term holding philosophy.
• Lindsell Train: UK-based boutique active equity manager offering concentrated, long-only global equity funds with a quality-focused, buy-and-hold philosophy similar to Fundsmith. Both are FCA-regulated boutique managers serving UK retail and advised investors.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/fundsmithllp
• YouTubeyoutube.com/channel/UCEW0yRVs0CbqT9CrP8i3mSQ
• Facebookfacebook.com/fundsmith
• LinkedInlinkedin.com/company/fundsmith-llp
• Instagraminstagram.com/fundsmithllp

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Fundsmith