Fundsmith has launched a portal for the Smithson Investment Trust but the direct route for investment may be a hassle for platform investors.
The portal, Signal Invest, enables corporate investors, retail investors, and advisers to subscribe for shares directly, as well as track the immediate progress of their subscription.
Fundsmith has paired with Link Asset Services, share registrar for the investment trust, for the technology launch.
The portal improves the IPO process for investors and issuers, said David Kilmartin, director at Link Asset Services. Fundsmith and Link Asset Services will receive real-time updates on the progress of the IPO so they can track demand for shares and rapidly analyse investor types.
“Signal Invest not only speeds the process of submitting an application for investors, it also brings a wealth of real-time information for our clients too; the Smithson Investment Trust has been able to analyse demand for shares in real-time,” Kilmartin said.
Platform complications
However, the direct route to investing may be a hassle for retail investors holding existing assets via a platform.
Ryan Hughes, head of active portfolios at AJ Bell, said the portal looks to allow investors to subscribe directly for the Smithson IPO without going through a sponsoring broker, which may not always work.
“Whilst a direct route might be helpful for some investors, many will already use a platform for managing their investments, so it may not be appropriate for investors who wish to hold the trust within their existing accounts on platforms,” Hughes said.
IPO portal provides transparency
Hughes did not think the portal is likely to materially impact the amount raised by the trust but said it may set a blueprint for transparency when it comes to future product launches.
He said: “This is not something I’ve seen before and therefore does bring an element of additional clarity to an IPO process for investment trusts which some may find helpful.” He said the tracking feature would be useful for investors wanting to know how much assets are being raised.
Link Asset Services said the branded Signal Invest portal will be widely available for future IPOs launching an offer for subscription, intermediaries offer or retail offer.
The Smithson Investment Trust will be managed by Simon Barnard and Will Morgan, who both joined from Goldman Sachs Asset Management last year. While Terry Smith (pictured) will not manage the trust, he would provide advice and support in his role as chief investment officer.
The planned IPO will take place in October.
