View the article online at http://citywire.co.uk/money/article/a892104
Terry Smith sues Barclays over money transfer
Star investor sues bank £220,000 for alleged investment losses caused by delays in transferring money to his top-performing fund.
The Citywire AAA-rated manager of the Fundsmith Equity fund claims negligence by the bank delayed the transfer of £330,000 from his investment company Aethelflaed Investments into his investment fund and caused him to miss out a near doubling in its value.
A spokesperson for Smith said: 'To say that the service the claimant and Terry received from Barclays Bank was atrocious is an understatement. Aethelflaed is compelled to pursue this action and looks forward to hearing the court's decision.'
The founder and chief executive of Fundsmith claims it took nearly three years for the transfer from Aethelflaed Investments to purchase investments in the £4.6 billion fund.
The £220,000 loss calculation is based upon the cost of units in the Fundsmith Equity fund which between 23 September 2012 and the date when he eventually bought them, 23 July 2015, rose 166%.
The matter first originated in 2012 and over a series of emails and telephone calls Smith was told he could not transfer the money without visiting his branch in Soho, which he claimed had been moved to Hounslow without his knowledge, according to The Times.
The bank has denied causing any loss through its negligence. A Barclays spokesperson said: 'We cannot comment on a matter which is currently in litigation, save to confirm that we will be vigorously defending this case.'
Over the past three years Fundsmith Equity is second out of 446 funds in Citywire's Global Equities sector with a 65% total return. Smith also runs the Fundsmith Emerging Markets (FEET ) investment trust.
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by Gavin Lumsden on Jun 29, 2016 at 15:23