Brokerage Tullett Prebon has revealed that it will retain Terry Smith as a consultant for the next two years.
The firm stated that Smith (pictured) would advise its chairman and board ‘on matters relating to the management and strategic development of the company’, for which he will be paid £250,000 a year via a personal services company.
Tullett Prebon confirmed last month that Smith would be stepping down as its chief executive on 31 August 2014, in order to focus on his Fundsmith venture.
John Phizackerley will replace him as the broker’s boss; Phizackerley was Nomura’s chief executive for EMEA until May last year, and previously served as co-head of equities at Lehman Brothers.
‘Terry Smith had the vision more than 10 years ago to bring together Tullett Liberty and Prebon Yamane to create what is today one of the leading inter-dealer brokers in the world,’ commented Rupert Robson, chairman of Tullett Prebon.
‘In the process he has created significant value for shareholders and has steered the group through the financial and regulatory upheavals of the last few years. We are immensely grateful for his huge contribution to the business and wish him well for the future with Fundsmith.’
Smith is also the Citywire AA-rated manager of the £2.1 billion Fundsmith Equity fund, which ranks third in the Global Equities sector over the past three years.
During that time it has returned 52%, compared with an average of 22.3% from the peer group, and also boasts the sector’s best maximum drawdown and Sharpe ratio for the period.
Last month Smith raised £193 million to launch a new emerging-markets investment trust, the largest conventional equity closed-ended launch since Fidelity China Special Situations netted £460 million in April 2010.