View more on these topics

Star fund manager Terry Smith lands £8m windfall

Terry Smith

Star fund manager Terry Smith took home £8.1m last year as his boutique firm Fundsmith saw profits more than triple.

Financial statements for the 12-month period ended 31 March 2017 show revenues almost doubled to £81.7m from £41.6m in the previous financial year.

Net profit for the period increased from £2.8m in 2016 to £14.2m. That saw Smith take home a bumper five-fold increase in profits compared to the £1.6m he received in 2016.

Smith manages the £13.7bn Fundsmith Equity fund, which invests globally, and the Emerging Markets trust, which has a market cap of £321.2m.

Fundsmith Equity has returned 175.3 per cent over five years compared to 86 per cent in the Global sector, where it is the top performing fund over that period. The fund has an AMC of 1 per cent and an OCF of 1.05 per cent. The AMC for the Emerging Markets trust is 1.25 per cent with an OCF totalling 1.6 per cent.

In November, after the results period, Smith launched the Sustainable Equity fund for charities to invest in.

Companies House lists Mauritius-based Smith as the sole person with significant control in Fundsmith. Chief operating officer Mark Lawrence and chief financial officer Simon Godwin are listed as designated members of the LLP.

Smith was included in the Sunday Times Rich List, published last May, with an estimated net worth of £220m.



Woodford and Fundsmith among most sold funds in January

Star fund managers Neil Woodford and Terry Smith ran some of the most sold funds in January, according to Charles Stanley Direct. Only the Axa Framlington Biotech fund was more sold over the month, while the Artemis Global Income was the best selling. The Woodford UK Equity Income fund suffered a “disappointing” 2016 delivering investors returns of […]


Rewarding failure? The lack of transparency in fund manager pay deals

Research carried out by Money Marketing reveals a lack of transparency about how fund managers are paid, and whether incentives match up with client interests. Several fund groups have taken steps to move to more “investor-friendly” pay structures but a lack of clarity remains on whether fund performance is the real driver behind pay. Out […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment