Terry Smith to launch GEM investment trust

Fundsmith founder and City financier Terry Smith is planning to launch an investment trust focusing on emerging markets.

The Fundsmith Emerging Equities trust will launch this year. Smith said it reflects the fact 32% of the revenues from the open-ended Fundsmith Equity fund come from emerging markets, although the businesses are based in Europe and North America.  In a letter to shareholders, Smith (pictured) said: "We are often asked why we do not invest directly in emerging markets if we like exposure to their superior growth. "The reasons are complex, but one of the main ones is liquidity. Although some of these [emerging market] companies are not small, there is not enough liquidity in their shares...