The flagship investment fund run by Terry Smith is on track to achieve its second-worst year on record for attracting new money, as investors shun the star UK stockpicker amid a prolonged period of underperformance.

According to data from Morningstar, the Fundsmith Equity fund posted net outflows of £1.8bn between January and the end of September, already surpassing the £1.5bn of investor redemptions it recorded for the whole of 2023.