ETF's - you were warned.

The losses of $2bn incurred by an allegedly rogue trader on the Delta One desk at UBS have again raised the subject of the (lack of) risk controls by banks dealing in opaque instruments, the need to separate investment and retail banking and the risks inherent in ETFs.

Daily Mail - The battle I warned was bound to come

Terry Smith argues that the sovereign debt crisis he predicted in 2008 has arrived, and that none of the piecemeal measures being proposed will work until the fundamental issues are addressed.

Fundsmith Plans Junior ISA For Government Launch Date

Fundsmith today announces plans to launch a Junior ISA. As the latest savings initiative from the Government to promote investing for children, Fundsmith would welcome the Junior ISA investment limit being raised 20% to £3,600 and would also encourage the Government to convert Child Trust Funds to Junior ISAs to aid simplicity, broader consumer adoption and equal opportunities for all children to maximise their savings.

The Guardian - News Corp: A family business

Terry Smith gives his account on News Corp, highlighting how extraordinary share arrangements insulate Rupert Murdoch from the repercussions of the company’s underperformance.

Accelerated Stock Repurchases

This week there was a new development in the share buyback mass shareholder value destruction exercise which has gripped American companies and has some following in the UK.

Well he would, wouldn't he?

When Mandy Rice-Davies was giving evidence at the trial of Stephen Ward, charged with living off the immoral earnings of Keeler and Rice-Davies, in the Profumo Affair, she made a famous riposte. When the prosecuting counsel pointed out that Lord Astor denied an affair or having even met her, she replied, "Well, he would, wouldn't he?" (often misquoted as "Well he would say that, wouldn't he?"). By 1979 this phrase had entered the third edition of the Oxford Dictionary of Quotations.

ETFs - Worse than I thought

On 11th January I published my first annual letter to the holders of the Fundsmith Equity Fund. In it I levelled some criticisms at the investment fad for Exchange Traded Funds ("ETFs").

Share Buybacks - Friend or Foe?

Almost 20 years on from publishing my book, Accounting for Growth, I am exposing another loophole in the accountancy rules which is allowing companies to appear to have created value when they have not.

Fundsmith's Terry Smith Commenting On The Year Ahead

At an Editorial Intelligence event, in association with the Financial Times, a panel debated "the Year Ahead". The event was chaired by Lionel Barber, the FT's Editor, and Terry Smith, Founder of Fundsmith, was joined on the panel by Lord Andrew Adonis, Gillian Tett and Baroness Shriti Vadera .

Fundsmith Launches Online ISA Capability & Further Web Functionality

Fundsmith, the new asset management company founded by Terry Smith, announces that direct investors can now invest in the Fundsmith Equity Fund ISA online, at www.fundsmith.co.uk. The Fundsmith website also now has the functionality for direct investors to choose between Accumulation and Income Units.

There’s Good News and Bad News

Just 18 days after the Fundsmith Equity Fund opened, the first takeover approach for a stock in the portfolio occurred with the news that KKR is in talks to buy Del Monte Foods.

Fundsmith Appoints Another Sales Director

Fundsmith, the new asset management company founded by Terry Smith, announces the appointment of Conrad Rey as Sales Director to Intermediaries having recently announced the appointment of Catherine Evans as Institutional Sales Director.

A Fundamental Approach to Investing From Terry Smith

Fundsmith is a new asset management company established by Terry Smith because he believes that most existing equity funds have not delivered what they promised. Fundsmith will be the main vehicle for his own investments. Instead of the multitude of expensive poor performing funds which investors currently have to choose from, the Fundsmith Equity Fund will offer investors the opportunity to invest alongside him in a high quality, concentrated portfolio of 20-30 resilient global growth companies which are held for the long term. The portfolio has no benchmark or sector constraints.
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