Investment Statement

For the six months ended 5th October 2021

Mr Michael Paul Docking

---FILE-0/000000/0000000/0-0/
 www.fundsmith.co.uk 0330 123 1815

Dear Mr
This report is your Semi Annual Investment Statement in the
Fundsmith Equity Fund to the 5th October 2021.
Contents
3. Valuation Summary
We published at the end of August the Interim Short Form
Report to 30th June 2021 in which I gave a brief overview of
4. Value of Your Investments
fund activity in the first six months of 2021 and you can find an 5. Record of Your Transactions
electronic copy on our website under Documents.
6. Record of Income
The next communication you will have from Fundsmith will be 7. About Fundsmith
my annual letter to shareholders which will be posted in
January 2021 and in which I will give a full account of activity in 8. Our Approach to Investment
the fund in 2021. 9. General Information
We launched a new Fundsmith website and mobile apps for 10. Guide to Your Statement
Apple and Android on 13th September and refreshed the
myAccount section. If you have not yet registered or
11. Contacts
re-registered for access please do so at
www.fundsmith.co.uk/register as the Fundsmith myAccount
provides a quick and easy way for you to manage your
investments with us and keep your details up-to-date.

Should you have any questions on your statement or feedback

please do not hesitate to get in touch with us, either by email
at enquiries@fundsmith.co.uk, via our WebChat service on the
website or by phone on 0330 123 1815 during normal working
hours.
I realise that you have a wide choice of funds to invest in and
thank you for choosing Fundsmith.
Yours sincerely,
Disclaimer
Past performance is not necessarily a guide to future
performance. The value of investments and the income from
them may fall as well as rise and be affected by changes in
exchange rates and you may not get back the amount of your
original investment. An English language prospectus for the
Fundsmith Equity Fund is available on request and via the
Fundsmith website and investors should consult this

A
Terry Smith
document before purchasing shares in the fund. Fundsmith
LLP does not offer investment advice or make any
recommendations regarding the suitability of its product. This
financial promotion is intended for UK residents only and is
communicated by Fundsmith LLP which is authorised and
Chief Executive, Fundsmith
regulated by the Financial Conduct Authority.

2
---FILE-0/000000/0000000/0-0/
 www.fundsmith.co.uk 0330 123 1815

Valuation Summary

Your Account Number 37398

Main Investor Mr Michael Paul Docking

Date First Invested 03/06/2019

Total value as at 5th April 2021 (last statement date) £1,238.09

Net value of transactions (buys less sells) in the period 6th April 2021 to 5th October
2021 £600.00

Increase/(Decrease) in the period 6th April 2021 to 5th October 2021 £124.12

Total value as at 5th October 2021* £1,962.21

Total income generated 6th April 2021 to 5th October 2021 £1.97
% Total Return, Fundsmith Equity Fund T Class, Accumulation - 6th April 2021 to 5th
+10.31%
October 2021

*If you hold income shares (Inc) this excludes the value of dividends paid out. If you hold accumulation shares (Acc) this includes the value of dividends
retained.

Performance, % Total Return

Sep 2021 to 2020 2019 2018 2017 2016 Inception Annualised
2021 30.09.21 to 30.09.21 to 30.09.21

Fundsmith Equity Fund1 -3.6 +14.9 +18.3 +25.6 +2.2 +22.0 +28.2 +531.0 +18.4
2
Equities -2.2 +14.6 +12.3 +22.7 -3.0 +11.8 +28.2 +260.8 +12.5
UK Bonds3 -2.0 -4.6 +4.6 +3.8 +1.2 +1.4 +6.5 +40.6 +3.2
4
Cash +0.0 +0.0 +0.3 +0.8 +0.7 +0.4 +0.5 +6.3 +0.6
1 2 3
Net of Fees priced at midday UK time MSCI World Index (£ Net) priced at close of business US time Bloomberg/EFFAS Bond Indices UK Govt
5-10yr
4
3 Month £ LIBOR Interest Rate

Fundsmith Equity Fund Ratings

3
---FILE-0/000000/0000000/0-0/
 www.fundsmith.co.uk 0330 123 1815

Value of Your Investments at 5th October 2021

Name of Investment Number Net Value of Current Current Increase/

of Shares Transactions* Price Value (Decrease)

Individual Savings Account (ISA)

Fundsmith Equity Fund T Class 319.98 £1,150.00 613.23p £1,962.21 £812.21
Acc
ISA Total £1,962.21
*This figure represents the sum of your investments in the fund less any redemptions. This value could be negative if you have redeemed an amount greater
than you invested.

4
---FILE-0/000000/0000000/0-0/
 www.fundsmith.co.uk 0330 123 1815

Record of Your Transactions 6th April 2021 to 5th October

2021

Name of Investment Date Shares Price Value

Transacted Per Share

Individual Savings Account (ISA)

Fundsmith Equity Fund T Class Acc
RSF Contribution 4 May 2021 17.07 585.96p £100.00
RSF Contribution 1 Jun 2021 17.08 585.63p £100.00
RSF Contribution 1 Jul 2021 16.07 622.39p £100.00
RSF Contribution 2 Aug 2021 15.64 639.47p £100.00
RSF Contribution 1 Sep 2021 15.28 654.65p £100.00
RSF Contribution 1 Oct 2021 16.13 620.22p £100.00
Total £600.00

5
---FILE-0/000000/0000000/0-0/
 www.fundsmith.co.uk 0330 123 1815

Record of Income 6th April 2020 to 5th October 2021

Income
Name of Investment Distribution Rate Distribution/Income Add Total Income
Payment Date Pence per Share Accumulation Equalisation* Distribution

Individual Savings Account (ISA)

Fundsmith Equity Fund T Class Acc

28 Aug 2020 1.3002 £13.35 £1.52 £14.87

26 Feb 2021 0.4817 £1.06 £0.31 £1.37
31 Aug 2021 0.7688 £1.58 £0.39 £1.97
All payments are classified as dividends for tax purposes
* Although all shareholders receive the same total distribution per share, the payment on group 2 shares, if applicable, contains an amount equivalent to the average
of the net income per share which was included in the price of shares purchased during the accounting period. This is repaid as equalisation.

6
---FILE-0/000000/0000000/0-0/
 www.fundsmith.co.uk
About Fundsmith
Fundsmith is focused on delivering superior investment
performance at a reasonable cost. It was established to be
different from its peers so as to achieve a different result in line
with Sir John Templeton’s axiom that “If you want to have a better
performance than the crowd, you must do things differently from
the crowd.” The rigorous research process of Fundsmith is central
to what we do. We apply exacting standards to potential
investments to produce a portfolio of resilient businesses with
excellent performance. Minimising the costs we incur on behalf of
our customers in implementing our strategy also sits at the heart
of our philosophy.
Fundsmith was established in 2010 by Terry Smith. The business
is owned and controlled by its partners, who have worked closely
together over many years, and is headquartered in London with
an office in Connecticut, USA. It is structured to survive Terry
Smith’s demise and continue with the same investment
philosophy. All partners of the firm have a significant
co-investment in our Funds delivering a clear alignment of
interest. Ancillary activities are outsourced to some of the world’s
leading providers in order to deliver high quality operations whilst
allowing the Fundsmith team to focus on the investment analysis
and portfolio management and customer care. As at 31st
December 2020 we managed £33bn on behalf of some of the
world’s largest and most sophisticated wealth managers and
private banks as well as for prominent families, charities,
endowments and individuals invested in our fund range;
Fundsmith Equity Fund (UK OEIC); Fundsmith SICAV
(Luxembourg SICAV); Fundsmith Equity Fund L.P. (Delaware L.P.);
Fundsmith Global Equity Fund Feeder (Mauritius Expert Fund);
Fundsmith Sustainable Equity Fund (UK OEIC); Fundsmith
Sustainable Equity Fund L.P. (Delaware L.P.); Fundsmith
Emerging Equities Trust plc (London Stock Exchange listed
investment trust); Smithson Investment Trust plc (London Stock
Exchange listed investment trust) and Smithson L.P. (Delaware
L.P.).
---FILE-0/000000/0000000/0-0/
0330 123 1815
Terry Smith - CEO/CIO
Terry Smith graduated in History from
University College Cardiff in 1974. He
worked for Barclays Bank from 1974-83
and became an Associate of the
Chartered Institute of Bankers in 1976. He
obtained an MBA at The Management
College, Henley in 1979. He became a
stockbroker with W Greenwell & Co in 1984 and was the top-rated
bank analyst in London from 1984-89. In 1990 he became head of
UK Company Research at UBS Phillips & Drew, a position from
which he was dismissed in 1992 following the publication of his
best selling book Accounting for Growth. He joined Collins
Stewart shortly after, and became a director in 1996. In 2000 he
became Chief Executive and led the management buy-out of
Collins Stewart, which was floated on the London Stock Exchange
five months later. In 2003 Collins Stewart acquired Tullett Liberty
and followed this in 2004 with the acquisition of Prebon Group,
creating the world's second largest inter-dealer broker. Collins
Stewart and Tullett Prebon were demerged in 2006 with Terry
remaining CEO of Tullett Prebon until September 2014. In 2010 he
founded Fundsmith where he is CEO and CIO. In 2012 he was
appointed a Member of the New Zealand Order of Merit for
services to New Zealand-UK relations following the success of his
campaign to commemorate the New Zealander, Air Marshal Sir
Keith Park.
Julian Robins - Head of Research
Julian Robins started his career with the
stockbroking firm EB Savory Milln in 1984.
From 1987 until 1999, he worked for BZW
and after their takeover of BZW’s equity
business in 1998, CSFB. Between 1988 and
1993 he was BZW’s senior bank analyst in
London. From 1993 until 1999, he worked as
an institutional salesman in New York. In 1999 he was one of the
founders of Collins Stewart’s New York office. He has a 1st class
degree in Modern History from Christ Church, Oxford.
7
 www.fundsmith.co.uk
Our Approach to Investment
We have a 3 step approach to investment:
1. Buy good companies
Typically these are companies with the following criteria:
High returns on operating capital employed: In cash. This
approach rules out most businesses that do not sell direct to
consumers or which make goods which are not consumed at
short and regular intervals.
Businesses whose advantages are difficult to replicate: We
seek companies with brand names, high market shares, patents,
licenses, distribution networks, installed bases and client
relationships. Together these define a company’s franchise and
its ability to outperform competitors.
No significant leverage required to generate returns: We only
invest in companies that earn a high return on their capital on an
unleveraged basis in recognition that sometimes credit is
withdrawn.
Growth driven from reinvestment of their cash flows at high
rates of return: We like to find businesses with a high degree of
certainty of growth from reinvestment of their cash flows at high
rates of return.
Resilience to change, particularly to technological
innovation: We will not invest in industries which are exposed to
rapid technological innovation and therefore obsolescence. This
approach renders many sectors uninvestible. For example, we
would never own a pharmaceutical development company.
2. Don't overpay
Attractive valuations: We are not buying shares in the hope that
they will rise and we will then be able to on-sell them to someone
else at a higher price, we aim to hold them indefinitely. To value
the company we estimate the free cash flow after tax and interest
but before dividends and other distributions and after adding
back any discretionary capital expenditure which is not needed
to maintain the business, otherwise we would penalise
companies which invest in order to grow. When a good company
is cheap enough for us to buy we will build a stake which we aim
to own indefinitely and collect the dividends paid out and pass
those on to our investors. In contrast many fund managers will
overpay for shares simply because they expect them to continue
rising so that someone else will pay even more for them. This is
sometimes appropriately called the Greater Fool Theory of
Investment.
8
---FILE-0/000000/0000000/0-0/
0330 123 1815
3. Do nothing
Investing for the long term: Our ideal holding period is
indefinite. FCA research shows the average mutual fund
manager turns over his portfolio 80% p.a. costing the fund in
dealing commissions and spreads 1.5%, a figure that is not
included in the widely quoted TER/OCF.
No market timing: If investors had missed the 20 best days
between 1980 and 2009, an index fund would have risen by 240%
instead of 700%. Therefore we won’t risk playing “hokey cokey”
with your investment and will maintain a full exposure.
Emotional discipline: Investors are their own worst enemy.
Research from Dalbar Inc. in the US shows that the average
equity fund investor significantly underperforms the average
equity fund due to their propensity to buy funds at the top and
sell at the bottom of market cycles. This is a core reason for
writing our Owner’s Manual, the aim of which is to help our
investors understand the importance of rational and emotionally
disciplined investing. Often the best course of action is to do
nothing.
We only hold 20-30 companies in our portfolio. You don’t need
any more than that to achieve the benefits of portfolio
diversification, the more companies you own, the less you know
about each one, and that can’t be a good thing.
Fundsmith
No Fees for Performance

No Up Front Fees
No Nonsense
No Debt or Derivatives

No Shorting
No Market Timing
No Index Hugging
No Trading
No Hedging

Fundsmith .nows
 www.fundsmith.co.uk 0330 123 1815

General Information

Fundsmith Equity Fund Fundsmith Sustainable Equity Fund

Legal structure Open Ended Investment Company (OEIC) Open Ended Investment Company (OEIC)
Regulatory status FCA registered FCA registered
Fund structure UCITS V UCITS V
Launch date 1 November 2010 1 November 2017
AUM as of 30.09.2021 £26.9bn £609.8m
Fund liquidity Daily Daily
Dealing cut-off time 12 noon on deal date 12 noon on deal date
Fund unit pricing 12 noon on deal date 12 noon on deal date
Fund unit settlement Deal date + 4 business days Deal date + 4 business days
T Class: £1,000 T Class: £1,000
Minimum holding R Class: £1,000
I Class: £5,000,000 I Class: £5,000,000
T Class: £250 T Class: £250
Minimum subsequent R Class: £250
buy/sell I Class: £5,000 I Class: £5,000
T Class: 1% T Class: 1%
Annual Management R Class: 1.5%
Charge (AMC) I Class: 0.9% I Class: 0.9%
Ongoing Charges T Class: 1.05% T Class: 1.06%
Figure (OCF) as at 30 R Class: 1.55%
June 2021 I Class: 0.95% I Class: 0.96%
Total Cost of Investing T Class: 1.08% T Class: 1.10%
(TCI) as at 30 June R Class: 1.58%
2021 I Class: 0.98% I Class: 1%

9
---FILE-0/000000/0000000/0-0/
 www.fundsmith.co.uk 0330 123 1815

Guide to Your Statement

Some terms explained

Most of the terms are self explanatory, but inevitably we have to abbreviate some because of space limitations. Below is a
description of those that are less obvious.

TERM DESCRIPTION

Acc Stands for accumulation shares. With accumulation shares the income is retained in the fund and
reflected in the price of each share.
Inc Stands for income shares. With income shares the dividends received by the fund are paid out.
Conversion In/Out Shares you have moved from one share type to another within the same fund.
Distribution The income that has been paid out to you or reinvested into your fund.
Reinvestment Where money received as income from your investments is used to buy more shares for you.
Transfer In Shares transferred into your account from another Plan Manager.
Transfer Out Shares transferred to another Plan Manager.
AMC Annual Management Charge.

OCF The OCF (Ongoing Charges Figure) is the total expenses paid by the fund, annualised, against its
average net asset value. The OCF will fluctuate as the average net assets and costs change.
RSF Regular Savings Facility
RIF Regular Income Facility
Stock Transfer The transfer of shares between accounts
In/Out
Fund Switch In/Out The movement between funds

10
---FILE-0/000000/0000000/0-0/
 www.fundsmith.co.uk 0330 123 1815

Contact details
Dealing and enquiries Recorded Delivery
Fundsmith LLP Fundsmith LLP
PO Box 10846 Adams House
Chelmsford 2 Springfield Lyon Approach
Essex Chelmsford
CM99 2BW Essex
United Kingdom CM2 5LG
United Kingdom

Telephone: 0330 123 1815*

Non UK: +44 1268 448659*
9.00am to 5.00pm, Monday to Friday
www.fundsmith.co.uk

Authorised Corporate Director

Fundsmith LLP
33 Cavendish Square
London
W1G 0PW
United Kingdom
Authorised and regulated by The Financial Conduct
Authority.
FCA Registration Number 523102

Financial Conduct Authority

Telephone: 0800 111 6768
Non UK: +44 207 066 1000
Website: https://www.fca.org.uk/

11
* Please note telephone calls may be recorded for monitoring and training purposes, and to confirm investors' instructions.
---FILE-0/000000/0000000/0-0/
 CH2 3QJ
Chester
83 Woodlands Drive
Mr Michael Paul Docking
00/000000

©2021 Fundsmith LLP. All rights reserved. This financial promotion is communicated by Fundsmith LLP.
Fundsmith LLP is authorised and requlated by the Financial Conduct Authority. It is entered on the
Financial Services Register under registered number 523102. Fundsmith LLP is a limited
liability partnership registered in England and Wales with number OC354233. Its registered office
address is 33 Cavendish Square, London, WIG OPW.

---FILE-0/000000/0000000/0-0/