Terry Smith's investment manager Fundsmith pays out nearly £14m to partners after revenues soar to £26.3m

 
Madeline Ratcliffe
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Smith founded Fundsmith after leaving brokerage Tullett Prebon

Partners in Terry Smith’s investment vehicle Fundsmith were paid £13.7m last year after revenues at the fund manager rose 73 per cent, to £26.3m.

Total remuneration for the five partners in the year ending March 2015 was up from £9.5m between seven partners the year before. The maximum payout for a partner was £6.8m.

Smith’s fund doubled its staff to 12, who received an average salary of £220,000.

Profits rose to £12.7m, up from £10.5m, held back by soaring administrative costs.

Fundsmith is famous for its long-term holdings in established companies. The best performing brands in the £4.6bn fund portfolio last month were Microsoft, Dr Pepper Snapple and Procter & Gamble. The fund delivered a 17.6 per cent annualised rate of return as of the end of December.

Last October, Fundsmith celebrated its fifth anniversary by announcing its cumulative returns of 121 per cent, since the fund was created, equivalent to annualised returns of 17.2 per cent.

Smith has invested £50m of his own money into the fund, and controls over half the voting rights.

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