Outspoken UK financier Terry Smith, who has just announced his retirement from stockbroker Collins Stewart to focus on new asset management firm Fundsmith, has said the only good way of getting fund managers to focus on performance is to make them invest their own money in their funds.

Smith's departure from Collins Stewart was announced this morning by the board of directors of Collins Stewart, which said Smith was to retire as a director of the company on December 6. Smith is the company's deputy chairman. He is also chief executive of Tullett Prebon, a UK inter-dealer broker.