Fundsmith to launch EM trust for Terry Smith

Fundsmith is launching an emerging markets trust after identifying an investable universe of 150 companies.

A letter informed shareholders today it was launching the Fundsmith Emerging Equities Trust at some point this year.

Fundweb understands that Terry Smith, the chief executive and chief investment officer of Fundsmith and manager of the £1.6bn Fundsmith Equity fund, will manage the trust.

The firm says many of the 150 companies it has already identified as investable are quoted subsidiaries, associates or franchises of firms already researched for its Fundsmith Equity fund.

A Fundsmith spokeswoman says: For reasons which we will detail in the soon to be published FEET Owners’ Manual we believe that this approach should produce better results for investors compared to many of the other investment products and approaches which have sought to capitalise on the growth in emerging markets.”

Charles Stanley Direct head of investment research Ben Yearsley says: “Fundsmith has had a very good start, attracted a lot of investors and has crucially delivered in performance terms since launch with their UK fund, it will be interesting to see if their process can be used in emerging markets.”