Semi-annual letter to investors
Manager of Fundsmith Equity Terry Smith has explained his investment case against AI-chip manufacturer Nvidia, despite missing out on outperformance in the first half of the year due to not owning the company.
Writing to shareholders in his semi-annual letter, Smith outlined the fund's return profile for the opening half of the year.Fundsmith Equity made a 9.3% total return between 1 January and 30 June 2024, which Smith said would "normally be cause for celebration", especially as the fund outperformed bonds - when using the Bloomberg Series-E UK Govt 5-10 Year Bond index as a proxy comparison (-2.2%) and holding cash at a 2.6% interest rate.However, on this occasion, Fundsmith's returns underperformed the MSCI benchmark.The MSCI World index made 12.7% over the six-month period, whic...
To continue reading this article...
See Also
Review of Fundsmith Equity FundJoin Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
