Smith's star fades as passive funds explode

The stock market had another strong year in 2025 but it wasn't a triumph for every investor.

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The UK's best-known fund manager, Terry Smith of Fundsmith Equity, had another tough time.

Smith is a throwback to the era when investors relied on star fund managers to beat the market year after year. The most famous was Neil Woodford, who turned a £10,000 investment into nearly £250,000 over 20 years. But his career collapsed in scandal, leaving investors nursing outsize losses.

Smith smashed the market for years but he's now come unstuck, although without any scandal attached.