Terry Smith's Fundsmith Equity Fund Earns Only 0.8% in 2025, Underperforming Cash Savings
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Fund Performance Struggles: Terry Smith's Fundsmith Equity fund achieved only 0.8% returns in 2025, significantly trailing the global stock market benchmark's 12.8% and cash deposits' 4.2%, indicating a competitive disadvantage in the current market landscape.
- Tech Stock Influence: Smith highlighted that the dominance of seven major American tech companies, including Alphabet and Apple, has made it challenging for funds without these stocks to keep pace with index performance, reflecting structural challenges to traditional investment strategies.
- Investment Strategy Adjustment: Despite Novo Nordisk being the largest detractor, impacting overall performance by 3 percentage points, Smith remains optimistic about the company's potential recovery under new management, demonstrating confidence in long-term investment strategies.
- Management Fees and Investment Philosophy: Investors are charged a 1.04% annual management fee, and Smith reiterated the importance of patience over frequent trading, emphasizing the need to focus on companies with long-term growth potential when making investment decisions.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
