Fundsmith SICAV or just plain equity?

Blackavar

Hi. I've been tracking the Fundsmith SICAV GBP equity fund for a while and was about to invest. My platform only offers Fundsmith equity as the nearest option and now on checking I see the investments are the same. Can anyone explain the difference between the SICAV version and just Fundsmith equity?
Thanks

bowlhead99

Fundsmith Equity Fund is a UK Oeic.
Fundsmith Equity Fund Sicav is a Luxembourg Sicav. 

The Sicav has €5bn in it and the Oeic has £20bn in it but the basic premise is the same and they are run on the same strategy.
Someone in the UK would generally use the Oeic. Someone in other parts of the EU would generally use the Sicav (it's a different corporate form, but still an open ended fund with retail and institutional share classes and offered in EUR, CHF, GBP and USD). 

The basic premise of the two funds are the same and the portfolio commentary basically consistent each month, and the same firm advises both investment vehicles with the same philosophy. There may be some slight differences in portfolio mix as they manage inflows and outflows (which will lead to some differences in geographic or sectoral allocation, because they are concentrated funds where one holding can account for several percent), but they both have basically the same favourite investments.

If you're based in the UK, just use the UK OEiC. If you're based on the continent, just use the Lux SICAV.

Blackavar

Excellent. Thanks very much for the info.

ffacoffipawb

bowlhead99 said:

Fundsmith Equity Fund is a UK Oeic.
Fundsmith Equity Fund Sicav is a Luxembourg Sicav. 

The Sicav has €5bn in it and the Oeic has £20bn in it but the basic premise is the same and they are run on the same strategy.
Someone in the UK would generally use the Oeic. Someone in other parts of the EU would generally use the Sicav (it's a different corporate form, but still an open ended fund with retail and institutional share classes and offered in EUR, CHF, GBP and USD). 

The basic premise of the two funds are the same and the portfolio commentary basically consistent each month, and the same firm advises both investment vehicles with the same philosophy. There may be some slight differences in portfolio mix as they manage inflows and outflows (which will lead to some differences in geographic or sectoral allocation, because they are concentrated funds where one holding can account for several percent), but they both have basically the same favourite investments.

If you're based in the UK, just use the UK OEiC. If you're based on the continent, just use the Lux SICAV.

There is also Fundsmith Sustainable Equity which is pretty much the same as Fundsmith but is a smaller fund.

Blackavar

Thank you