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In its first set of annual results since listing, Terry Smith’s fledgling investment trust Smithson has significantly outperformed its benchmark.

Read The Times' view on Smithson Investment Trust

A year ago Smithson became the largest ever investment trust launch, raising £822.5m to invest in quality small to mid-cap companies. Investors lapped up the shares in the hope they would deliver similar success to its sister fund, Fundsmith Equity. Their faith has been rewarded with Smithson having achieved 18.8% return...

Smithson Investment Trust PLC said Tuesday it outperformed its comparative index for the period from its London listing on October 19 last year to the end of June, amid improved market conditions...

As an equity fund manager, questioning the investment myth that equities outperform bonds is the equivalent of coprolalia, an occasional characteristic of Tourette’s syndrome in which the sufferer involuntarily utters socially inappropriate remarks.

There seems to be something so alluring about dividend income that it often seems to lead investors to abandon common sense or be encouraged to do so by the investment industry.

For example, how many times have you heard it said that the majority of returns from investment in equities comes from reinvestment of the dividends?

Last month, star manager Terry Smith announced he was throwing £25m of his own money behind a new investment trust, Smithson. Ahead of its launch, Money Marketing editor Justin Cash sat down with Simon Barnard and Will Morgan, the fund’s managers, to talk strategy, as well as their thoughts on some of the hottest topics in investments.

City star Terry Smith has revealed plans for a new investment trust focused on global small and mid-sized companies. Smith's self-titled firm Fundsmith will roll out the Smithson Investment Trust with the aim of finding and investing in 25 to 40 of the world's best small and medium-sized companies.

FT article on the launch of Smithson Investment Trust

Adding small-caps to a global equity portfolio adds value without heightening the risk.


If you are an investor you may have encountered these two adages. First, that in order to earn a higher return you must take greater risk. Second, asset allocation is the most important contributor to performance.

In his article for FTfm, Terry Smith discusses sustainable investing and questions how green your portfolio really is.