How Big Can Smithson Get?
One of the questions that often gets asked about Smithson, Fundsmith’s global smaller company investment trust, is whether it is in danger of growing too large.
One of the questions that often gets asked about Smithson, Fundsmith’s global smaller company investment trust, is whether it is in danger of growing too large.
Smithson’s shares are up more than 50% since it floated in October 2018 and its share count has risen 52%. It’s now approaching £2bn in market cap and it’s already become one of the 20 largest UK investment trusts.Smithson Closes In On £2 Billion
Smithson, Fundsmith’s global small-cap investment trust, has had an eventful 2020. Its wild movements are a perfect example of why trusts can be a little bit tougher to own than other funds when the market goes through a rocky patch.
Smithson Investment Trust has made an impressive start on the London Stock Exchange with a return around triple that of its benchmark. But we shouldn’t get too carried away.
Smithson Does Nothing: As Promised
Smithson Investment Trust (SSON) released an interim report this morning, giving us a decent look at what’s been happening in four and a half months since it joined the market. There was little in the way of surprises and it looks like everything is proceeding to plan.
Let’s start small in 2019. One of my investing ‘themes’ at the moment is to dedicate a slice of my portfolio (roughly 10% or so) to smaller company investments. I feel that I’m pretty well covered UK-wise, so the next stop is global small-cap funds.
It probably wasn’t a great surprise to see that Smithson Investment Trust is looking to raise more cash. But it was a little surprising that it was left so late and that it’s increasing by so much.
Applications are now open for Smithson Investment Trust, the keenly anticipated new offering from Terry Smith’s Fundsmith. No doubt many people will be happy to take the plunge purely on the basis of the great run the Fundsmith Equity Fund has had. But here are a few things that I think are worth knowing before you make any decision.
Comments from Terry Smith in recent weeks led some people to believe that Fundsmith was about to launch a small-cap investment fund. This morning it was confirmed: Smithson will soon be with us.
Fundsmith To Launch Smithson: A “Small-Cap” Investment Trust
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