Open-ended investment companies (Oeics) were given the go-ahead this time five years ago as the fina...
Open-ended investment companies (Oeics) were given the go-ahead this time five years ago as the final regulations governing them were published
Oeics were expected to come into being the following New Year, providing there were no last minute parliamentary objections or an early general election.
The introduction of the new structure allowed the investment management companies of Oeics to appoint their own boards, rather than have an independent board, as investment trusts do. Angela Knight, economic secretary to the Treasury, believed this would allow British fund managers to attract investors from all over Europe.
At the same time, China shares were raising the risk profile of Asian portfolios without the knowledge of investors as the exposure could be listed in asset allocation breakdowns as a Hong Kong weighting.
The lines of demarcation between Hong Kong and China investments were becoming blurred as more Chinese companies were listing on the Hang Seng index and the Hong Kong handover to China was getting closer.
The two countries had different risk profiles as Standard & Poor's rated Hong Kong's long-term foreign currency debt as single A, compared to a BBB rating for China.
Also five years ago, Fund Research was gearing up to rate open and closed-end fund launches, in response to growing demand from its clients for new issue analysis.
Until then, the company had provided clients with a monitoring and rating service on funds with at least a two-year performance record. It also announced plans to include unrepresented sectors such as healthcare, raw materials and energy.
Legal & General was also busy, launching a private medical cover plan and introducing a share exchange scheme into its revamped, no-load unit trust range.
Meanwhile, Thornton decided to give up active fund management in favour of a black box approach, with the launch of its UK smaller companies investment trust.
The Momentum trust was looking to raise up to £30m and would pick FTSE small-cap stocks with upgraded earnings. It was hoped the share price would outperform in the next 12 months. The group had backtested the concept over the previous year.
Also that week, the AITC published its latest figures, indicating that regular savings into investment trusts maintained their momentum in the second quarter. The total invested for the three months to 30 June 1996 was £62.7m, an increase of 34.6% on the same period previous year.
Since November 2008
Share issue oversubscribed
PARTNER INSIGHT: For many advisers, outsourcing to a multi-manager or discretionary fund manager makes sense, allowing them to focus on the adviser-client relationship
Events, information and other services
An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client