Fundsmith Equity Fund’s 2025 investor letter revealed 0.8% returns for T Class Accumulation shares, trailing the MSCI World Index’s 12.8%. Since inception, the fund has outperformed the index by 1.7% p.a. Weakness in the dollar, index concentration, and growth in Index Funds contributed to underperformance in 2025.

In Q4 2025, Fundsmith Equity Fund highlighted Philip Morris International Inc. (NYSE: PM), a tobacco company with a 2.65% one-month return and 38.33% gains over 52 weeks. On January 9, 2026, PM stock closed at $162.61 per share, with a market cap of $253.125 billion. The fund praised PM for its move into reduced-risk products.

Philip Morris International Inc. (NYSE: PM) was discussed in Fundsmith Equity Fund’s Q4 2025 investor letter, praising PM’s shift to reduced-risk products. While 90 hedge funds held PM in Q3, down from 111 in the previous quarter, Fundsmith sees potential in AI stocks. For those seeking undervalued AI stocks, check out their free report on the best short-term AI stock.

Read more at Yahoo Finance: Philip Morris (PM) is Benefiting from Its Reduced-Risk Products