Fundsmith Launches Fundsmith Equity ETF (Ticker: ETFT)

Fundsmith, the fund manager founded by Terry Smith, announces the launch of the Fundsmith Equity ETF. This new exchange-traded fund (“ETF”) is listed on the New York Stock Exchange with the ticker ETFT.

The Fundsmith Equity ETF will invest in companies that, in Fundsmith’s view, meet the following criteria:

• high quality companies that can sustain a high return on operating capital employed;
• companies whose advantages are difficult to replicate;
• companies with a high degree of certainty of growth from reinvestment of their cash flows at high rates of return;
• companies that are resilient to change, particularly technological innovation;
• companies which do not require significant leverage to generate returns; and
• companies whose valuation is considered by the adviser to be attractive.

With the increasing popularity of ETFs with retail investors, the Fundsmith Equity ETF offers an easy-to-access, tax-efficient and transparent investment solution.

Terry Smith, Founder and Chief Investment Officer of Fundsmith, commented:

“Our strategy has always been popular with retail investors and so we are launching the Fundsmith Equity ETF to provide U.S. retail investors with a straightforward way to access Fundsmith’s long-term investment strategy, focused on high-quality companies with strong fundamentals and sustainable growth.”

Key Features of the Fundsmith Equity ETF:

Tax Efficient: Unlike mutual funds which must distribute realised capital gains each year to investors — triggering tax, ETFs very often avoid distributing gains at all so investors only pay tax when they sell their own shares, not when other investors redeem.

Transparent: Full information on the ETF portfolio can be found at www.fundsmithetf.us.

Tradeable: Listed on The New York Stock Exchange under the ticker symbol ETFT and easy to invest in via brokers.

Further information on the Fundsmith Equity ETF is available on www.fundsmithetf.us.

About Fundsmith

Fundsmith is focused on delivering superior investment performance at a reasonable cost. It was established to be different from its peers so as to achieve a different result in line with Sir John Templeton’s axiom that “If you want to have a better performance than the crowd, you must do things differently from the crowd.” The rigorous research process of Fundsmith is central to what we do. We apply exacting standards to potential investments to produce a portfolio of resilient, sustainable businesses with excellent performance. Minimising the costs we incur on behalf of our customers in implementing our strategy also sits at the heart of our philosophy.

Fundsmith was established in 2010 by Terry Smith. The business is owned and controlled by its partners, who have worked closely together over many years, and is headquartered in London with affiliates in Mauritius and Connecticut, USA. It is structured to survive Terry Smith’s demise and continue with the same investment philosophy. Our Portfolio Managers have a significant investment in our funds delivering a clear alignment of interest. Ancillary activities are outsourced to some of the world's leading providers in order to deliver high quality operations whilst allowing the Fundsmith team to focus on the investment analysis and portfolio management and customer care.

www.fundsmith.com

An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call +1203 594 1863 or click here. Read the prospectus carefully before investing.

Important Risk Information: The Fund was recently formed and therefore has limited performance history for investors to evaluate. The Fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time.

All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of an investment is available in the prospectus. The values of equity securities, such as common stocks and preferred stock, may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, inflation (or expectations for inflation), changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities generally have greater price volatility than fixed-income securities.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable. Diversification does not eliminate the risk of experiencing investment losses.

Fundsmith Investment Services Limited, registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Distributors, Inc. is the distributor for the Fund.

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