Smithson Investment Trust Raises £822.5m After Initial Placing
The newly established investment trust, is to be overseen by Mr. Terry Smith, the experienced industry veteran with a strong track record, as Chief Investment Officer.
Smith's investment philosophy is to buy and hold, ideally forever, high-quality businesses that will continually compound in value, having achieved tremendous success with the Tullet Prebon pension fund and the Fundsmith equity fund.
The fund successfully raised £822.5m via 82,250,956 Ordinary Shares issued at a price of £10 per Ordinary Share.
It was set up to invest in small & mid cap companies globally, with Smith personally investing £25m into the fund.
Initially with a fundraising target of a £250m, it more than doubled to £600m, before announcing today it has raised more than £822.5m, indicating a very high interest in the smaller and mid cap investments globally.
The shares will begin trading on the London Stock Exchange’s Main Market at 8.00 a.m. on Friday, 19 October 2018 under the ticker SSON.
Terry Smith, Chief Executive Officer and Chief Investment Officer of Fundsmith LLP, the Company's Investment Manager, commented:
"Our thesis that many of the existing small and mid cap funds in the market are anachronistic by being overly home biased and that there was a gap for a quality small and mid cap global equity fund appears to have been borne out by a wide range of investors subscribing for the Smithson offer.”
He added “In addition, our innovative step to absorb all the issue costs as the investment manager has helped to remove the concern that investors participating in the IPO would be subject to an initial loss from these costs.”
“I look forward to working with our portfolio management team to deploy the funds raised into the compelling growth companies we have identified.”
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