Smithson Investment Trust: buy now or never

When Fundsmith launched the Smithson investment trust in 2018, scepticism was rife. But it has been a big success, says Max King.

Fever-Tree’s British business is maturing, but growth elsewhere should remain strong © Getty

When markets are down, it’s a good idea to snap up the shares that seemed too expensive when markets were riding high and will, assuming that their prospects remain undiminished, go on to be unaffordable again. On that reckoning, Smithson Investment Trust (LSE: SSON) is a buy.

At its flotation in autumn 2018 it seemed sensible to be cautious. Smithson raised a record £822m, yet popular flotations often presage trouble. Terry Smith, Fundsmith’s founder, had recruited a duo from Goldman Sachs, Simon Barnard and Will Morgan, to run Smithson, which was pitched as “son of Fundsmith”.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.