Terry Smith suggests platforms exacerbate fund liquidity issues - reports

‘Can’t list fund on a platform unless it’s daily dealing’

clock • 1 min read

Terry Smith, manager of the £17.8bn Fundsmith Equity fund, has hit out at platforms for only selling daily dealing funds, creating liquidity problems for those with assets that are harder to sell.

Smith told the FT: "There is nothing wrong per se with open-ended funds owning [hard to sell] companies. What is clearly wrong is putting such instruments in a daily dealing fund." Smith added: "But at the moment you can't list a fund on a platform in the UK unless it's a daily dealing fund." The issue of fund liquidity has come under scrutiny following the collapse of Neil Woodford's Woodford Equity Income fund, while earlier this year Mark Barnett sought to reassure investors in his Income and High Income funds that liquidity does not pose an issue. But Smith said that the regula...

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