Good news poured out of the City today as two independent banking and broking firms reported strong trading and veteran Terry Smith announced he is launching a new fund to invest in emerging markets.
Smith, chief executive of broker Tullett Prebon, told investors in his three-year-old Fundsmith Equity fund, which invests in blue-chip western companies, that he will launch an investment trust this year for emerging markets companies.
Like his senior fund it will concentrate on consumer stocks. He said: “There is an established trend for the emergence of consumer classes in emerging markets which looks likely to last for several decades and which should provide a tailwind for performance.”
Strong increases in share trading in the final quarter of last year have benefited stockbroker Charles Stanley and broader banking group Close Brothers, which owns market maker Winterflood.
Charles Stanley said revenues rose by 18% in the three months to December with funds under management up 13.4% in the nine months to £20.1 billion. Revenues in the broking arm Charles Stanley Securities doubled.
Close Brothers said that its loan book increased in value by 4% to £4.8 billion in the six months to today. Trading at Winterflood has recovered from last year’s lows as market sentiment has increased.
