Sir Keith Park

On Wednesday 15th September we celebrated the 70th anniversary of Battle of Britain Day with the unveiling of the statue of Sir Keith Park in Waterloo Place, London. As Mrs Moneypenny pointed out in her column on 11th Sept, the campaign was launched in that column three years to the day prior to the unveiling:

Fundsmith & Fees

As stated before, our main focus at Fundsmith is on producing superior investment returns. However, fees produce a major drag on returns over time. I founded Fundsmith to offer a high quality portfolio of resilient global growth companies which we hold for the long term and for which we charge a reasonable fee with no hidden costs.

Fund Management Fees - "Two and Twenty"

I don't want to focus on fees to the exclusion of all else - our main focus at Fundsmith is on delivering superior performance. However, we would like to point out the very meaningful drag that fees and charges have on investment performance.

The Reaction to the 2 and 20 Analysis

There are many who disbelieve the simple arithmetic of the impact of hedge fund style 2 and 20% fees on the division of the investment proceeds between investor and fund manager. As demonstrated, if 2 and 20 were applied to Warren Buffett's investment performance, over 90% of the eventual value of the fund would accrue not to the investor, but to the manager.

Financial Times - Facts belie the diagnosis on credit derivatives

Terry Smith argues that the report on Current Issues Affecting the OTC Derivatives Market and its Importance to London makes for alarming reading, if one believes that politicians and regulators should approach the financial crisis as the medical profession would approach a sick patient: by diagnosing the illness and then prescribing treatment.

The Guardian - G20: urban myths and meddling

Terry Smith states that there are some unpalatable facts which it is vital for the G20 leaders to understand if they are to tackle the financial crisis effectively.