View the article online at http://citywire.co.uk/wealth-manager/article/a729992
Terry Smith launches emerging markets investment trust
by Dylan Lobo on Jan 24, 2014 at 07:47
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.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the funds
Look up the fund managers
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.
by James Phillipps on Jul 25, 2014 at 14:49