UK fund management firm, Fundsmith, is to use the recent UCITS IV legislation allowing them to launch a regulated SICAV feeder fund in Luxembourg.
The Fundsmith Equity Fund Feeder provides investors who prefer to invest offshore or through a SICAV, access to the Fundsmith Equity Fund. Costs of running the funds are kept to a minimum as Fundsmith is able to manage a single pool of assets.
Investing via the SICAV Feeder will incur an identical Annual Management Charge (AMC) as investing directly in the UK OEIC, thus preserving the low cost structure.
Since launch one year ago, the fund has outperformed by 10.4% delivering a return of 12.1% vs the MSCI World’s 1.7% return. The fund offers investors the opportunity to invest in a high quality, concentrated portfolio of 20-30 resilient global growth companies which are held for the long term.
The portfolio has no benchmark or sector constraints. The Fund charges a flat 1% annual management charge (AMC), if bought direct plus minimal trading costs due to Fundsmith’s long term buy and hold investment strategy.
Terry Smith, Chief Executive of Fundsmith, said: “We are delighted to come to the market so quickly with our SICAV. 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."
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till