Fundsmith doubles funding target for new investment trust

Fundsmith is looking to increase the amount it raises when it floats its Smithson Investment Trust from £250m to £600m.

The company, headed up by star manager Terry Smith, announced that it was aiming to raise £250m through the investment trust’s intial public offering last month.

Inside Fundsmith’s new investment trust

The company now says that it has experienced significant demand, which exceeded its original target of 25 million ordinary shares, and has decided to issue up to 35 million additional ordinary shares.

The fund’s non-executive director Lord St. John of Bletso has increased his intended stake from 5,000 to 10,000 shares at the total price of £100,000.

Smith had put £25m of his own money behind the fund, and a number of other Fundsmith employees had also contributed.

While Smith retains oversight of the fund, it will be managed by an investment management team led by Simon Barnard as investment manager and Will Morgan as assistant investment manager.

Investors who applied to buy shares in the original scheme and now wish to withdraw can do so before 1pm on October 12.

The investment trust will be targetting small and mid cap companies that are smaller than the normal targets for Smith’s flagship equity fund.

Speaking to Money Marketing earlier this month, Barnard and Morgan said they would be using the same research processes as the wider Fundsmith brand to pick investment targets.


Spotlight on charges 700x450.jpg

FCA drops contingent charging ban as transfer specialists forced to take investment exams

Pension transfer specialists will have to get the same qualifications as an investment adviser in addition to the existing specialist qualification, the FCA has ruled today. After months of consultation, the regulator has produced new rules and guidance aimed at improving defined benefit transfer advice. While it has stopped short of a contingent charging ban, […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm