Danish drugmaker Novo Nordisk and a depreciating US dollar are the culprits for Fundsmith Equity’s underperformance in the opening half of the year, according to manager Terry Smith.
The £20.1bn fund lost 1.9% from 1 January to the end of June, lagging the MSCI World benchmark which made 0.1%. Fundsmith Equity ditches Brown-Forman after decline in stocks since the beginning of the year In his half-yearly update, Smith said that Novo Nordisk "alone accounted for almost all the underperformance during the period" after it had failed to "snatch defeat from the jaws of victory in respect of its leadership in weight loss drugs continues to be remarkable". Obesity drugs, particularly those focused on weight loss, have been a major market trend in recent years, with t...
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