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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.

 
Terry Smith sues Barclays over money transfer

Star fund manager Terry Smith is suing Barclays (BARC) for £220,000 over accusations the bank caused him to miss out on investment gains.

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.

4 comments so far. Why not have your say?

Know-it-all

Mar 17, 2016 at 12:01

I was worried, for a minute, I thought Smith had some investment funds with Barclays Investments. My late mother's funds were lodged with them before they indefinately shut down their online trading to "upgrade" it with minimum notice. What a shower!

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paul kaye

Mar 18, 2016 at 13:10

Can't believe what I am reading 3 years?!!!!!!!!!!!what king of fund manager is this !?

Am pulling my money out now !

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paul kaye

Mar 18, 2016 at 13:11

meant to say "kind" of fund manager

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Dennis .

Mar 20, 2016 at 10:09

Something weird here, Terry Smith is down as one of the Directors of Aethelfled Investments, all of the others have resigned. Although I have a lot of money invested in Fundsmith I do wonder sometimes whether it's performance is too good to be true. Charismatic finance people can sometimes be a problem.

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