Cover of MoneyWeek magazine issue no 504

Watch the pounds

17 September 2010 / Issue 504

How to profit from weight loss

PLUS:

  • Investors hate these stocks – it's time to buy
  • Why the banks are still in big trouble
  • The union bruiser with a bust of Lenin

Excerpt

A rude awakening for funds

Terry Smith, the CEO of Tullett Prebon, has a reputation. The FT refers to him as a “combative City broker”. The Daily Telegraph calls him the “famously combative City tycoon”. Breakingviews opts for “pugilistic”. Pretty much everyone refers to his style as “aggressive” or “outspoken”.

My own experience of him suggests he’s ruder than most. He, of course, considers himself straight-talking. I don’t suppose his reputation has people making a bee line for him at parties, but I also don’t suppose he cares much. If he did, he wouldn’t be talking about taking on the fund-management industry.

He is, says Financial News, about to launch a new venture, Fundsmith, with the aim of undercutting everyone else on fees. There isn’t much more detail than this yet. But if Smith is going to get out there and do some straight talking, we’re in for a treat.

If we’re really lucky, he’ll point out that the fee structure invented by fund management firms is an outrage.

• Read the full editor’s letter here:
A rude awakening for funds

• We’d like to know what you think of our website. Please take five minutes to fill in our reader survey, and you could win a year’s subscription to MoneyWeek.