You are here: Home - Investing - Experienced Investor - News -

Top manager Terry Smith unveils new investment trust

0
Written by:
04/09/2018
Star fund manager Terry Smith is to launch a new investment trust focused on global small and medium-sized companies.

The trust will by run by Smith’s fund management business, Fundsmith, which the city veteran founded in 2010.

At launch, the Smithson Investment Trust will invest in 25-40 companies out of an investable universe of 83 companies identified by the team.

Simon Barnard and Will Morgan will manage the trust on a day-to-day basis, while Smith will provide advice and support in his role as chief investment officer.

The trust will apply Fundsmith’s self-proclaimed “proven investment strategy”: buy good companies, don’t overpay, do nothing.

Smith currently manages the hugely popular £17bn Fundsmith Equity fund, which mainly targets large-cap stocks.

He was the top performing manager in the UK last year, delivering twice the returns to investors than the passive equivalent.

The new investment trust is seeking to raise up to £250m via an initial public offering (IPO). Shares will be available via a placing, an offer for subscription and an intermediaries offer.

A placing refers to attracting institutional investors, an offer for subscription is for general retail investors and an intermediaries offer lets brokers and advisers buy on behalf of their clients.

Terry Smith, chief executive officer and chief investment officer of Fundsmith, said: “Last year we hired Simon Barnard and Will Morgan from Goldman Sachs to research the opportunity presented by applying Fundsmith’s proven investment process to companies typically smaller than the ones the Fundsmith Equity Fund would invest in, hence the name Smithson.

“I am delighted that Simon and Will will manage the fund, with my oversight as Fundsmith’s Chief Investment Officer. I will be investing £25m in Smithson at launch with fellow Fundsmith partners and employees investing an additional £5m.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Do your Premium Bonds die with you?

There are 1.5 million unclaimed Premium Bond prizes worth nearly £60m waiting to be collected - and numerous reasons why...

Close