FUNDSMITH EMERGING EQUITIES TRUST PLC

Description

Fundsmith Emerging Equities Trust plc is a UK-based investment company. It was founded in the year 2010 and its headquarters in situated in London, United Kingdom. It has an office in Connecticut, US, as well. The investment objective of the company is to create a high-quality and diversified portfolio of assets which consists of listed and traded companies in that mainly operate in developing countries or derive a significant proportion of their revenues from these countries. These types of investments give a direct advantage to the investors to exploit the profitable opportunities that arise due to an increasing consumer base in those countries. It has a substantial geographical footprint, and its area of operation includes India, Hong Kong, US, China, UK, and other countries. India accounts a maximum share of 46.2% by listings as per the May 2021 available figures. The goal of the company is to maximise the long-term risk-adjusted returns for all its shareholders, including both income growth and gains from capital appreciation. The company is listed and traded on the main market of the London Stock Exchange.

The company operates across a wide range of sectors, including consumer staples, healthcare, communication services, consumer discretionary, materials, industrials, technology, financials, and money market. Consumer staples account for a significant 49% among the sector split. The investment manager of Fundsmith Emerging Equities Trust plc is Fundsmith LLP, which is authorised and regulated by the FCA (Financial Conduct Authority). The investment manager plans follow a strategy of investing primarily in consumer stocks, and not in cynical sectors like finance, construction, and utilities etc. to reduce the volatility and risk factors and reap the benefits of the rising consumer class in developing economies. Fundsmith Emerging Equities Trust plc basically invests in companies that have foreseeable and anticipated revenues and have less capital intensity as well as higher gains on capital, with the aim to deliver compound growth in returns to the shareholders in the long run. The investment manager also takes into consideration the added risk of investing in developing instead of developed economies, and approximately one-third of the companies that are chosen for investment are quoted subsidiaries or franchisees of MNCs for better assessment and due diligence.

The company has been able to manage funds on behalf of some globally renowned wealth managers, banks, charities, individuals etc. This is done through the fund range of the company, which includes Fundsmith Equity Fund, Fundsmith Equity Fund Feeder, Fundsmith Equity Fund L.P, Fundsmith Sustainable Equity Fund, and Fundsmith Emerging Equities Trust plc. The top 10 holdings of the company include Foshan Haitian, Mercadolibre, Asian Paints, Info Edge, Vitasoy, Havells, Metropolis Healthcare, Marico, Avenue Supermarts, and Nestlé India.

Fundsmith Emerging Equities Trust plc follows the highest standards of corporate governance and aligns itself with the Association of Investment Companies (AIC) Corporate Governance Code. The board of the company has set up separate committees for audit and management engagement. It has an ethical code of conduct for running its business operations and promotes a culture of trust, transparency, and accountability. It acts as a responsible business and aims to create value for all stakeholders.