MENORA MIVTACHIM HOLDINGS LTD.

Fundsmith LLP operates as one of the most distinctive and successful equity investment managers to emerge from the United Kingdom in recent decades, founded and led by the renowned investor Terry Smith. Headquartered in London, Fundsmith launched its flagship Fundsmith Equity Fund in November 2010 with a clear, transparent investment philosophy that has attracted substantial assets from retail and institutional investors alike. Filing with the SEC under CIK #0001569205, Fundsmith's 13F disclosures reveal the firm's substantial U.S. equity holdings, reflecting the significant allocation to American companies within its global portfolio of high-quality businesses. Terry Smith, who serves as Chief Executive Officer and Chief Investment Officer, built his reputation through a distinguished career spanning investment research at UBS and Collins Stewart, and as CEO of Tullett Prebon, before founding Fundsmith to implement his conviction in concentrated quality investing. The 13F Portfolio Composition provides quarterly visibility into Fundsmith's U.S.-listed holdings, showcasing the firm's commitment to owning exceptional businesses purchased at sensible valuations and held for the very long term.

Fundsmith employs a quality growth investment strategy distilled into three deceptively simple principles: buy good companies, don't overpay, and do nothing. Terry Smith's investment philosophy centers on identifying businesses with high returns on capital employed, sustainable competitive advantages, growth opportunities, and resilient business models that can compound value over decades without requiring heroic assumptions or portfolio intervention. The Sector Allocation History observable through 13F filings reflects concentrated positioning in consumer staples, healthcare, and technology sectors—industries where Fundsmith identifies companies meeting its exacting quality criteria including pricing power, recurring revenue, and low capital intensity. Portfolio construction emphasizes concentration in approximately 20-30 holdings selected through rigorous fundamental analysis, with the explicit rejection of diversification for its own sake in favor of conviction in the highest-quality opportunities. The firm's legendary low turnover—often single-digit percentages annually—reflects genuine long-term ownership rather than trading orientation, with Smith frequently noting that the best businesses require minimal portfolio activity. Investment decisions emphasize understanding business economics, management capital allocation, and competitive positioning rather than macroeconomic forecasting or market timing. Capital trajectory optimization occurs through the natural compounding of exceptional businesses rather than active portfolio manipulation.

Fundsmith LLP represents one of the most philosophically coherent and successful investment enterprises of the contemporary era, built around Terry Smith's conviction that owning exceptional businesses for the long term generates superior risk-adjusted returns. The firm's emergence from a standing start in 2010 to multi-billion-pound asset manager reflects both investment performance and Smith's ability to articulate a compelling investment philosophy that resonates with investors seeking alternatives to closet indexing and hyperactive portfolio management. Fundsmith's transparent approach—including detailed annual letters, public portfolio disclosure, and Smith's active social media presence—provides unusual visibility into investment thinking for a firm of its scale. The firm's Top 10 Holdings Concentration analysis reveals the high-conviction positioning that defines Fundsmith's approach, with significant portfolio weight in the highest-quality businesses regardless of index representation. Historical replication of disclosed holdings enables systematic study of how a concentrated quality growth strategy performs through varying market conditions, factor rotations, and economic cycles. Simulated Growth Chart analysis of the reconstructed U.S. equity positions provides visualization of compounding behavior, capturing the capital trajectory of Smith's quality-focused approach. Annualized Return (CAGR) calculation from the 13F holdings history quantifies performance across observable filing periods, valuable for understanding the long-term efficacy of the buy-good-companies-and-hold approach. A diagnostic question of enduring investment significance: How does Fundsmith's quality growth portfolio perform during factor rotation episodes when valuation compression affects premium-multiple businesses, and does the fundamental quality of underlying holdings provide sufficient protection against multiple contraction during rising rate environments?

Fundsmith's risk philosophy represents a distinctive perspective that prioritizes business risk over volatility-based risk metrics, viewing stock price fluctuations as opportunities rather than risks when underlying business quality remains intact. Terry Smith's framework emphasizes permanent capital loss avoidance through owning high-quality businesses with durable competitive positions, strong balance sheets, and pricing power that protects against inflationary erosion. Max Drawdown Depth analysis of the disclosed equity holdings captures historical performance during market corrections, though Fundsmith's quality-focused portfolio has historically demonstrated defensive characteristics during equity market stress due to the resilient nature of its underlying holdings. The Volatility Profile of disclosed positions reflects moderate-to-low volatility characteristics consistent with quality factor exposure, though concentrated positioning may produce meaningful tracking error relative to broad market indices. Sharpe Ratio analysis provides risk-adjusted context valuable for evaluating Fundsmith's risk-return profile, with historical performance suggesting favorable outcomes from the quality growth approach over extended periods. The concentrated portfolio generates individual stock risk that Fundsmith accepts as the cost of conviction investing, offset by the quality characteristics that provide fundamental downside protection. Smith's transparent communication style and public visibility provide accountability that complements formal risk oversight, with annual shareholder letters detailing portfolio rationale and performance attribution.