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Fundsmith tops sales charts for advisers

Fundsmith tops sales charts for advisers

Advisers continue to place client cash into the £12bn Fundsmith Equity fund, according to data from investment platform FundsNetwork.

Fundsmith, which is run by the veteran city figure Terry Smith, is the top performer in the IA Global sector over the past three and five years.

The fund has returned 168 per cent over the past five years, compared with 84 per cent for the average fund in the sector in the same time period. That ranks the fund the top performer out of 144 funds in the sector in the same time period.

The Fundsnetwork data showed that adviser’s bought more funds from the Sterling UK bond sector than any other in July, but Fundsmith was the top overall seller, and top among advisers buying for Isa clients.

For advisers buying on behalf of Sipp clients, the £4.07bn Lindsell Train UK Equity fund was the biggest seller, with Fundsmith in third place.

Given the income focus of many Sipp investors, the 0.73 per cent yield on Fundsmith equity may seem meagre when compared with the 1.9 per cent yield offered by Lindsell Train UK Equity.

Lindsell Train UK Equity is run by the high profile investor Nick Train, and has returned 122 per cent over the past five years, compared with 67 per cent for the average fund in the IA UK All Companies sector in the same time period.

Paul Richards, head of sales at Fundsnetwork, said the recurring theme for Isa investors in recent years has been the hunt for income, and this is evident in the latest figures, as a majority of the most bought funds among Isa clients are income funds.

Patrick Connolly, chartered financial planner at Chase De Vere, commented that his firm have used Fundsmith Equity for their clients for several years.

He said: “This is a fund with an extremely impressive track record of performance. It has become very, very popular with investors in recent years, but it is one we have used for a long time.”     

David.Thorpe@ft.com