View the article online at http://citywire.co.uk/wealth-manager/article/a754718
The reinvention of Terry Smith
by Dylan Lobo on Jun 04, 2014 at 13:44
Possibly a key moment in the fund’s life was John Chatfeild-Robert’s decision to buy into the strategy back in August 2012. The Jupiter chief investment officer remains a fan and described the fund as a good ‘buy and forget’ holding in March this year.
Performance backs this sentiment. Since launch the fund has returned 70.7% compared to a sector average of 38%, ranking it fourth in the 217-strong IMA Global sector, and earning Smith a Citywire AAA-rating.
And today’s news that Smith is standing down as chief executive of Tullett after eight years to focus on FundSmith shows this business is no flash in the pan. Assets under management have now breached the £2 billion mark, giving FundSmith the platform to develop.
Next up is an emerging markets investment trust, which will employ the same straightforward approach to the existing fund. Smith is investing £5 million of his own money into the trust and is targeting £250 million from a fundraising.
With the politics put to one side and Tullett no longer absorbing his attention, FundSmith could be one of the firms to watch over the next few years.
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
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
More from us
- Terry Smith launches fund designed to repair a 'broken' industry
- Smith confirms Tullett Prebon departure as Fundsmith hits £2bn
- Fundsmith seeks £250m for EM trust launch