Terry Smith s knockout payday caps journey from East End underdog to City champ
In just over a decade since the Square Mile boss launched his Ryanair of asset management flagship fund it has become Britain’s largest
14 April 2021 • 6:00am
Terry Smith, one of Britain s best-known fund managers, has bagged a bumper payday of up to £125m after a record profit at his investment firm.
The entrepreneur s business Fundsmith generated profits of £48.5m in the year to March 2020, up from £26.4m the year before - entitling the fund manager to £29.7m, a 61pc share.
Ballooning payments from the British business to its Mauritius outpost mean that Smith, a resident of the Indian Ocean island, could have received a far higher figure even than this. Mauritius-based Fundsmith Investment Services Limited charged the business £158m during the year, up from £116m over the previous 12 months.
Philip Rodrigs also left with a cloud over his head, though the circumstances surrounding his departure were very different from Barnett with River and Mercantile sacking him over an alleged conduct issue, which he has disputed.
His boutique Raynar Portfolio Management opened its doors in February 2020, as the pandemic was ramping up and a year later had amassed £75m in assets under management.
Easier for big name managers to stage comeback at boutiques
Fund buyers reckon it will be easier for Barnett to stage a comeback at a boutique than at one of the fund giants.
GDIM investment manager Tom Sparke says boutiques lend themselves well to more high-profile managers who may conflict with other ‘big names’ in a larger firm.
Investors hit by £120m writedown to former Woodford funds
Value of stocks backed by disgraced former fund manager slashed
Writedowns come as Mr Woodford attempts to relaunch his career
Investors in Neil Woodford s former funds have taken a £120m hit after the value of stocks backed by the disgraced fund manager was slashed by supervisor Link Fund Solutions.
Trapped investors in the failed Woodford Equity Income fund were hit with a 25pc loss on Thursday as Link wrote down the value of the remaining assets to £124m, down from £164m.
That followed Link s £80m writedown to the Schroder UK Public Private investment trust on Wednesday, sending the shares 17pc lower. Mr Woodford resigned as manager of the trust, formerly called Woodford Patient Capital, in 2019 after he was sacked by Link as Woodford Equity Income s manager.
Jupiter loses out on £322m EM mandate to Somerset Capital
Omnis pulls Jupiter off second mandate in less than a year
Omnis Investments has yanked its Omnis Global Emerging Markets Equity Opportunities mandate from Jupiter, appointing Somerset Capital Management instead.
The appointment of Somerset to manage the £322m fund from 8 April was driven by Omnis’ focus on “delivering the best outcomes for clients and advisers”.
The fund had been run by Jupiter’s global emerging markets head of strategy Ross Teverson since launch in August 2019. Since inception it has returned 17.1% while its benchmark the MSCI Emerging Markets index has delivered 26.3%.
Do we really need to know what our fund managers hold?
By Charlotte Richards 6
Over the past few decades, the way we invest has changed dramatically.
The industry has progressed so much, particularly when it comes to technology, and investors can now deal funds daily on their laptops and phones, a far cry from the drawn-out processes of old.
Investors would be able to see a fund factsheet, including a list of the fund’s top 10 holdings. But now, getting the full details of exactly what a manager holds is coming more into fashion. Knowing the ins and out of every single investment decision may be helpful in some instances, but is it really necessary when it comes to selecting the right manager?