Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Terry Smith launches emerging markets investment trust

7 Comments
Terry Smith launches emerging markets investment trust

Terry Smith's boutique Fundsmith is to launch an emerging markets trust.

The FundSmith Emerging Equities Trust (FEET) will employ the same strategy as Smith's Fundsmith Equity mandate, focusing on consumer stocks and the growth of the middle class in emerging markets, which the firm believes looks likely to last several decades.

Smith (pictured), who will run the trust, has identified an investable universe of over 150 companies for FEET.

Smith said he chose to launch under a closed-ended structure for liquidity reasons. 'Although some of these companies are not small, there is not enough liquidity in their shares in local markets to hold them responsibly through an open-ended fund. Especially one with daily dealing,' he said.

'As an investment trust, FEET will overcome the issue of combining an open-ended fund with stocks which have limited liquidity in the underlying investments since it will raise an initial fixed amount of capital, to which I will subscribe.'

The Fundsmith Equity fund launched in November 2010. In the three years to 23 January the fund has returned 55.2% versus a 30% rise in the FTSE World Index, earning Smith a Citywire AA-rating.   

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: bonds with Ian Spreadbury

Brewin's Gutteridge: bonds with Ian Spreadbury

This week Brewin Dolphin's research head chats to Fidelity's Ian Spreadbury about the recent behaviour of interest rates and credit spreads.

Play Can tech advances explain the UK productivity puzzle?

Can tech advances explain the UK productivity puzzle?

Much of the productivity puzzle of the last eight years may be explained by a failure to capture new tech

Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Your Business: Cover Star Club

Small is beautiful: wealth firms still see value in less rich

Small is beautiful: wealth firms still see value in less rich

Latest statistics from findawealthmanager.com show that there are many firms who still service smaller clients.

Wealth Manager on Twitter