Smith scoops £8m bonus as Fundsmith flourishes

Terry Smith’s eponymous firm increased profits six-fold last year with the veteran fund manager set to scoop a bonus of more than £8m as a result.

Smith

It was a bumper year for Fundsmith, ending the financial year up to 31 March 2017 with operating profits of £14.2m, according to the latest filing at Companies House.

It marked a vast increase on the year ending in March 2016, when profits stood at £2.8m.

Turnover almost doubled at the firm from £41.6m in 2015/16 to £81.7m reported in 2016/17 following a solid year for the firm.

The equity fund topped best-buy lists, even beating off competition from Neil Woodford’s flagship equity income fund.

Terry Smith, who founded the firm in 2010, is due to rake in a bonus of more than £8m for the year, a huge increase on the £1.6m he was paid for the year ending 2016 and more than the entire amount paid out in wages and salaries to the firm’s 15 staff for the year.

The main fund, Fundsmith Equity, continued to grow last year and stood at £13.4bn in assets by the end of December.

The fund has offered positive returns in 71% of the months it has been operational since 2010.

 

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