Fundsmith unveils low-cost concentrated Equity fund

City veteran Terry Smith has today launched a high-conviction and low-cost equity fund he believes to be ‘unlike any other product' in the retail market.

The Fundsmith Equity fund, the debut offering from the group founded by the Tullett Prebon CEO, offers a concentrated 20-30 global stock portfolio, but with no initial fee and a flat 1% AMC to direct investors. Smith, who will manage the Fundsmith Equity product, says the asset management industry is "broken", with the vast majority of investors suffering from punitive fee structures, overtrading, fund proliferation, closet indexing, and over-diversification. "The net result is poor performance. The average IMA Global Growth fund delivered a total return of just 0.7% in the ten years ...