Fundsmith’s Terry Smith Awarded AAA Citywire Rating

by Fundsmith | Feb 14, 2014
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Terry Smith, who launched Fundsmith in 2010, has been awarded a AAA Rating by Citywire.

According to Citywire, this rating places Terry Smith in an elite group of only 154 managers globally to receive a AAA rating in February. Citywire tracks 9,446 managers around the world and so this ranks him in the top 1.6% of all fund managers tracked by the organisation.

Citywire rates managers not funds, applying a quantitative methodology approved by AKG, an independent actuary, to measure risk-adjusted returns rather than simply seeing how much money fund managers have made. The ratings evaluate a fund manager’s performance against their direct competitors, with less than 20% of all active fund managers in the UK achieving a Citywire Rating.

The Fundsmith Equity Fund, launched in November 2010, offers investors a high quality, concentrated portfolio of 20-30 resilient global growth companies which are held for the long term.

The T Class Accumulation Shares, in the three years ending 31 October 2013, delivered a compound return of 17.3% p.a. and a total return of 61.2% outperforming the MSCI World Index (GBP, Gross) by 19.4%, and the average IMA Global Equity Fund by 31.7%, placing the fund 4th in the IMA Global Growth Sector out of 244 funds.

The Fundsmith Emerging Equities Trust (FEET) is due to launch in 2014 and full details will be made available in due course.

Terry Smith, Founder and Chief Executive of Fundsmith:
“I am very pleased to have been awarded a AAA Citywire rating. When we launched Fundsmith, my goal was to run the best fund there is through delivering the highest return over a long period of time, adjusted for risk. Citywire’s rating shows that we are on track and we are confident that the Fundsmith Emerging Equities Trust that we are launching later this year will deliver similarly strong performance over time for our investors.”