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…
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