The offer period runs to 20 June and the trust is expected to start trading on 25 June. The product was initially announced earlier this year in January. An annual management fee of 1.25% will be charged with no initial charge or performance fees.
The Fundsmith Emerging Equities trust (FEET) will follow a similar stock selection strategy to that of the Fundsmith Equity Fund. According to the fund's manager, Terry Smith, the trust will be invested using the same strategy as the fund except that all of the companies in the portfolio will have the majority of their operations in, or revenue derived from, developing economies.
"The trust, like the fund, avoids financials, heavily cyclical sectors such as construction and manufacturing, utilities, resources and transport, and will instead invest exclusively in consumer stocks," Smith said.
The portfolio is expected to hold between 35 to 55 companies out of a selection of 139 companies Smith has identified for the trust’s investable universe.
Smith will take on the role of portfolio manager and will be assisted by head of research Julian Robins, based in the US. Additionally, Tom Boles, Jonathan Imlah, Michael O’Brien and Sandip Patodia make up the London-based team.
