What Went Wrong for Terry Smith’s Trust? (FT Adviser)

• The exposure to India, a commodity importer, has proved unwise, at a time when commodity prices have risen stoutly and while higher commodity prices would be expected to benefit many emerging markets – the Fundsmith Emerging Market Equity trust has a 5 per cent exposure there, leaving it the wrong side of market movements this year.
• His investment style is to invest in established, relatively mature growth companies, but one of the challenges associated with emerging markets is that there are comparatively few such businesses, as by definition, economies at an earlier stage of economic development have fewer mature companies. READ MORE

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