Fundsmith Emerging Equities Trust (Feet) has called on shareholders to vote in favour of voluntary liquidation as the investment firm faces declining markets.
The firm has consulted with its largest shareholders and professional advisors and believes the proposals are "in the best interests of shareholders as a whole".
A general meeting will be held at which the company will seek approval from shareholders, and if approval is forthcoming, the company will be placed into voluntary liquidation by the end of November.
"We have always maintained that we would only run funds where we felt we had a particular edge that would allow us to deliver superior risk-adjusted returns," said star fund manager Terry Smith, founder and chief executive of Fundsmith, in a statement.
"Whilst Feet has made a positive return since launch in 2014 it has fallen below our expectations and, unlike other fund managers who might seek to hold onto the fund for the sake of the fee income, we feel it would be in the best interests of shareholders to receive their investment back in cash through a liquidation of the portfolio and wind-up of the company."
Shares jumped 9.88% on the news to 1,335.00p.