Terry Smith's pay slipped from last year's record payout, as Fundsmith LLP reported a slide in profits and assets under management.
The fund manager of the UK's largest retail equity fund pocketed £31.2m in the twelve months to March, down from a record £36.4m last year, according to accounts filed in Companies House.
Q&A: Terry Smith on activism, ESG and what has changed since 2010
Over the reported period, AUM at the firm fell by 7.8% to £36.4bn, down from £39.5bn during the same period last year, as a result of performance and net redemptions, while profits slumped 14% to £50m, down from £58.2m in 2022.
Turnover at Fundsmith LLP fell more than a fifth to £278.6m during the year in review, down from £358.1m. Meanwhile, staff costs dropped to £16.7m from £27m last year despite the number of average employees rising from 42 to 44.
Fundsmith, which oversees investments in London, Delaware and Luxembourg, was charged £186m in fees to Fundsmith Investment Services (FISL), a business based in Mauritius, where Smith resides. At year-end, a net £46m remained payable to the firm.
Terry Smith lands £36m payout despite turbulent year for Fundsmith Equity
It is believed Smith holds a 61% stake in the business, which is not obligated to disclose its accounts, suggesting an estimated personal gain of nearly £113.4m from these charged fees. This would bring his total earnings for the year to slightly over £144.5m, although roughly a quarter of the bill to FISL was outstanding.
The firm's flagship fund, Fundsmith Equity, held £23.9bn in assets at the end of September, down from a peak of about £28.8bn in December 2021, according data from to FE fundinfo.
Year-to-date, the strategy is up 8.1%, while the IA Global sector has gained 5.7% over the same time period. Last year, the fund was down 13.8%, compared to an 11% loss for the sector.
