Terry Smith, a fund manager who has retained his reputation, has played down suggestions that he is considering retirement.
Speculation in the City that succession planning is moving up the agenda at fund management firm Fundsmith rose after some comments made at the firm's annual general meeting (AGM).
Smith, who is aged 67, addressed the question of succession planning at the AGM and even went so far as to suggest the company’s head of research, Jeremy Robins, was one possible successor.
Smith, who owns a controlling stake in Fundsmith, also said he is working on a plan to reduce that stake and allow others in the firm to increase their stake so that control of the business remains with the active management.
“I don’t think it is a viable structure for the firm for the day when I’m not here for whatever reason to still own the majority of the firm,” Smith was quoted as saying.
However, a spokesman for Fundsmith explained: “Terry is not considering retiring. He was simply describing Fundsmith’s succession plans, which it has to have in place, and which he has described many times in the past. “
Unlike Neil Woodford, Smith’s reputation as a stock-picker remains intact although he has cut down on his fund management duties in recent years.