Smithson's record-breaking IPO shows 'cult of the star manager remains alive'

Largest trust IPO on record

The record-breaking £822.5m fundraise for the Smithson investment trust, announced last week, shows the conviction investors have in the Fundsmith approach and its founder and CEO Terry Smith, say trust buyers and analysts. Although they warn investors should not opt for a fund "purely because of the hype".

After increasing its fundraising target earlier this month following very significant demand, Smithson attracted the largest amount for any investment trust launch on record - even beating Woodford Patient Capital's £800m IPO in 2015. While the level raised came as a surprise for some - especially considering many IPOs this year failed to reach their targets and much of the fundraising in recent years has been in the alternatives space - they also believe its success can largely be attributed to the manager's reputation. "Clearly, the pull of the Fundsmith name is very strong with inv...