Terry Smith: Why tobacco is one of my favourite ever sectors

Benefiting from government opposition and intervention

Laura Dew
Terry Smith: Why tobacco is one of my favourite ever sectors

Veteran investor Terry Smith, manager of the Fundsmith Emerging Equities Trust (FEET), has highlighted tobacco as one of his favourite ever investment sectors, pointing to its strong long-term performance.

Smith (pictured) holds 7.5% in tobacco companies in his investment trust, including Egyptian firm Eastern Tobacco and Indonesian company Sampoerna. Tobacco firms are also prevalent within his £5.5bn Fundsmith Equity fund, which applies a similar investment strategy to FEET but across developed markets; Philip Morris and Imperial Brands are both in his top five holdings. Speaking at a seminar run by Frostrow Capital, which provides secretarial services to FEET, Smith said: "Tobacco is one of the best-performing sectors ever created. It is living proof the best industries are those whic...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Funds

Bestinvest's bi-annual Spot the Dog finds over £45bn is still in underperforming portfolios

Bestinvest's Spot the Dog finds fewest underperformers in six years

Number of dog funds more than halves

clock 08 August 2022 • 4 min read
The £237m Baillie Gifford British Smaller Companies Fund was rated as not providing value.

Baillie Gifford UK equity strategies suffer low ratings in AoV

One red and four amber funds

clock 08 August 2022 • 2 min read
Royal London group chief executive Barry O'Dwyer

RLAM AUM shrinks 9% in H1 but sustainable funds remain popular

9% decline in AUM

clock 05 August 2022 • 2 min read