The £3bn Smithson investment company, run by Fundsmith, has underperformed its index for the first reported period since its inception in October 2018, as the manager adds two new investments and ditches one during the first half of 2021.
From January to the end of June 2021 the Net Asset Value per share (NAV) of the Company increased by 5.9% and the share price increased by 4.1%. Over the same period, the MSCI World SMID Index, the company's benchmark, increased by 12.4%. The manager, Simon Barnard, said this underperformance was down to a shift towards value and inflation expectations which "in theory, reduces the value of higher rated growth companies". Barnard added two US companies to the portfolio during the period: Rollins and Wingstop. Rollins is a US-based pest control business, which benefits from organic gro...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
