The Fund returned -2.9% in the first half of 2026, lagging the benchmark due to momentum-driven markets and AI sector concentration.
Fundsmith Equity Fund reported a -2.9% return in the first half of 2026, trailing the MSCI World Index by 14.1 percentage points. The underperformance was attributed to a market dominated by passive index funds and AI-related exuberance, which skewed sector concentration and increased volatility.
The firm noted a 51% portfolio turnover during the period, reflecting challenges in navigating momentum-driven trends. Fundsmith plans to adopt a more active investment approach while maintaining its core strategy of holding high-quality companies at reasonable valuations.
Among its holdings, Yum! Brands (YUM) was highlighted, closing at $153.28 on July 31, 2026, with a market capitalization of $41.85 billion. The stock posted a -7.66% one-month return but gained 4.27% over the past 52 weeks.