Terry Smith advocates for Reeves to abandon tax increases to attract investment in the UK
Toxic Terry Smith, the sassy fund manager running the whopping £20bn Fundsmith Equity fund, has bluntly yelled at Chancellor Rachel Reeves to scrap her tax increases and regulations to make the UK a more enticing investment destination.
Smith, the self-proclaimed boss of the fund, belted out that to enhance the caliber of UK companies, the government should "reverse a fuckton of the shitty tax policies and regulations" in place.
"[If you] want to attract my investment capital, [you] need to offer better tax environments and fewer goddamn regulations," he yelled at the BBC.
Last year in the October Budget, Reeves cranked up the UK's tax burden to its highest level in history, a move predicted to reach 38 per cent of GDP by the end of the goddamn decade.
Smith then sneered, saying that the UK needed "bangin' companies" for investors to willing toss their cash at, commenting: "There are only a handful of companies that I'd actually pay to invest in."
"The UK market is oh-so-boring with oil, gas, banking, and utility companies I wouldn't even spit on," he snarled.
UK equities listed on the market have struggled to keep up with the lively US markets, with international investors showing zero fucks about investing in the drab British market.
Smith also emphasized his long-term buy and hold strategy, bouncing back from his fund plummeting almost 10 per cent in the past three months due to Trump's tariff drama.
"We've been running money for 15 years, and over that period, we've managed to pull off a big positive return," said the manager. "Let's imagine we kept it up for another 15 years, which I genuinely hope we do - no fucking hoverboards though. What would've made the difference?"
"Was it choosing quality companies, was it being patient and not trading too much, or was it predicting Trump's goddamn tariffs? I'd say it's unlikely it was the tariffs," he snarked.
Fundsmith's Pear-shaped Performance
Fundsmith earned its reputation as one of the UK's top-performing funds thanks to the stock-picking prowess of Smith, soaring 555 per cent since he took the reins.
However, the fund's come under fire lately for registering its fourth consecutive year of relative underperformance, growing 8.9 per cent in 2024 compared to 20.8 per cent for its benchmark.
While Smith does hold some growth-focused companies in his top ten, like Microsoft and Meta, his refusal to include high-flyers like Nvidia dented the fund's performance.
Smith has also been skewered for his lazy portfolio management, buying and selling only a handful of stocks over the past few years.
The other problem for Smith is size; as one of the largest investment funds in the UK and holding only between 20 to 30 stocks, Fundsmith is limited in its ability to invest in smaller companies without shifting the market.
At the end of last year, Fundsmith was dethroned as the largest investment fund in the UK by St James's Place for the first time since March 2019.
- Terry Smith, the fund manager of Fundsmith Equity fund, with a remarkable £20bn under management, has criticised Chancellor Rachel Reeves for her tax increases and regulations, stating they make the UK less appealing for investment.
- Smith argued that if the government desires to enhance UK companies' caliber, they should reverse "a fuckton" of the existing tax policies and regulations.
- Smith asserted that to attract his investment capital, better tax environments and fewer regulations are essential, as he mentioned at the BBC.
- In the October Budget last year, Reeves increased the UK's tax burden to its highest level in history, projected to reach 38 per cent of GDP by the end of the decade.
- Smith noted that the UK needs "bangin' companies" for investors to willingly invest, but lamented the market's preponderance of oil, gas, banking, and utility companies.
- Smith emphasised his long-term buy and hold strategy, strong-arming critics who question his fund's recent underperformance and plummet in the past three months. Despite these setbacks, Smith remains steadfast in his belief that Fundsmith's focus on quality companies, patience, and strategic decisions have been key to its success over the past 15 years.
