Fund manager Terry Smith has spent £1m on buying more shares in the Fundsmith Emerging Equity investment trust, having stepped aside as its manager in May.
Stock market filings show Mr Smith spent £973,250 buying 85,000 shares in the trust at £11.45 a share earlier this month.
Since its launch in 2014, the trust has returned 19 per cent, compared with 34 per cent for the average trust in the AIC Global Emerging Markets sector in the same time period.
The trust is run by Fundsmith, the company Mr Smith co-founded, and the fund manager since May has been Michael O’Brien, though Mr Smith continues to advise the trust in his role as chief investment officer of Fundsmith.
His recent share purchase took his personal holding in the trust above 3 per cent.
The trust trades at a discount to net assets of 6.8 per cent.
Mr Smith has said he expects the emerging market trust to perform better over the long-term than the Fundsmith Equity fund he also runs, because he feels the growth prospects for emerging markets are superior to those of developed markets.
david.thorpe@ft.com
