Fundsmith sticks with top holdings as new investment trust rides out volatility

The new small and mid-cap focused investment trust backed by star manager Terry Smith has stuck with its strong weighting to IT stocks, according to its latest factsheet.

The Smithson investment trust became the largest launch of its kind when it listed in October.

The latest fund factsheet published today reveals that the trust has continued to pursue a 44 per cent split to the IT sector, followed by industrials at 21 per cent and healthcare at 17 per cent as its next largest holdings.

There have been no outright sales or puchases over the last month, with the largest individual holdings remaining medical device company Masimo, real estate company Rightmove, and software firm Check Point.

Smithson’s top 10 holdings as at 31 December

Masimo
Rightmove
Check Point
Equifax
Verisk Analytics
Sabre
CDK Global
Recordati Spa
Halma
Verisign

Ambu, Recordati Spa, Simcorp, Spirax-Sarco and Geberit were the five top contributors to performance, while Sabre, Verisk Analytics, Cognex, Ansys and Equifax were the principal detractors.

In total, Smithson has 29 holdings, having set a target of between 20 and 40 at inception.

By geography, Smithson has a 49.9 per cent weighting to the USA, an 18.8 per cent UK exposure, and 7.6 per cent weight to Denmark.

The factsheet also reveals that the investment trust has a policy of gearing only up to 15 per cent in the short term, and no more than 20 per cent of assets can be in deposits held with a single body.

In terms of cumulative performance, the trust had grown 8 per cent by early November, but has since dropped down to around 0.2 per cent growth – below the 1.69 per cent average for the Global Smaller Companies sector.

The estimated ongoing charges figure for the first year of trading is 1 per cent.

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