Star stock picker Terry Smith stood to earn up to £125m last year
The Mauritian entity charged Fundsmith £156 million for its services, up from £115.8 million in 2019, according to the UK partnership’s accounts.
The Mauritian group’s accounts are not disclosed, so its costs and earnings are unknown. However, given that Smith is thought to be entitled to the same proportion of its earnings as he received from Fundsmith, he could have received as much as £95.7 million from the Mauritian business if its costs had been nil. That would have lifted his total to approximately £125 million in 2020 before taxes.
Nil costs is a realistic assumption, isn’t it?