Terry Smith will step down from the Fundsmith Emerging Equities trust after five years running the vehicle.
He will carry on as chief investment officer and will offer “advice and support” to the fund’s analysts, Michael O’Brien, who will become trusts’ portfolio manager, and Sandip Patodia, who has been promoted to assistant portfolio manager.
The changes are effective from the end of month and they will include a reduction in the trust’s annual investment management fee from 1.25 per cent to 1 per cent.
Fundsmith emerging equities trust chairman Martin Bralsford says: “The promotion by Fundsmith of Michael and Sandip to portfolio manager and assistant portfolio manager reflects the prominent roles they have had for some time and is a natural progression of the team.
“The board looks forward to working more closely with Michael and Sandip with the ongoing support of Terry in his capacity as Fundsmith’s chief investment officer”.
Smith says: “I am delighted that the significant role played by Michael and Sandip in the formation of the fund and its ongoing activities is being recognised.
“The initial success of Fundsmith’s other investment trust has made me realise that my oversight as CIO, with dedicated fund managers doing the day to day work, has worked extremely well and I believe the changes we are announcing today will help deliver the long term outperformance that we seek.
“The fee reduction also brings the charges closer into line with our other funds whilst recognising the greater geographical research coverage that we have to maintain on [Emerging Equities trust].”
Both O’Brien and Patodia joined Fundsmith ahead of the launch of the Emerging Equities trust in 2014. Jonathan Imlah and Tom Boles will continue to assist as research analysts.