Fundsmith Adds Mastercard to Equity Fund Portfolio

Investment management firm Fundsmith added Mastercard Incorporated to its Fundsmith Equity Fund portfolio during the second quarter of 2026. In its Q2 investor letter, the firm identified the payments sector as one of the few industries expected to grow regardless of artificial intelligence advancements.

Fundsmith cited Mastercard's strong network effect and potential growth from 1.4 billion unbanked adults globally, alongside expansion into business-to-business payments, as primary drivers for the move. By holding both Visa and Mastercard, the firm now maintains over 6% exposure to the payments sector while managing stock-specific risk.

This strategic adjustment follows a challenging first half of 2026 for the Fundsmith Equity Fund. The fund recorded a -2.9% return, underperforming the MSCI World Index by 14.1 percentage points. The firm attributed this underperformance to a momentum-driven market characterized by AI-related exuberance.