Terry Smith hits out at negative headlines in shareholder letter

Highlights strong performance of Fundsmith Equity fund

Terry Smith, manager of the £27bn Fundsmith Equity fund, has written an unexpected letter to shareholders defending the fund from headlines which predicted its demise earlier this year.

In the letter, Smith highlights articles from Citywire and City A.M. in May which focused on the outflows from the vehicle in the midst of the much-anticipated rotation from growth to value investing. He wrote: "If you have been reading what investment commentators have been saying during this period you might be rather surprised that our fund has fared so well. You might even be surprised that we are still here. "I realise that some commentators do not want the facts to get in the way of a good story but our performance versus the 'value' stocks and Covid recovery plays tells its own...