Five years ago heading into the week of 26 August, Standard Life was preparing to expand its unit tr...
Five years ago heading into the week of 26 August, Standard Life was preparing to expand its unit trust operation over the following two years, with plans to launch a new fund every three to four months. The group was set to launch a UK smaller companies unit trust in the autumn, as well as offer a managed fund Pep mortgage from October onwards.
Standard Life Fund Management, the company's retail unit trust arm, had around £655m under management at that stage and claimed to be the ninth biggest Pep provider with 84,700 clients.
HSBC was also to launch a second offering of its Pep Plus, which allowed IFAs to invest £9,000 in a single Pep. The Pep Plus II also permitted transfers from other Peps, unlike the first product launched earlier that year in May.
Pep Plus, which raised £68.9m, qualified for the £3,000 single company Pep allowance, even though it invested in the FTSE 100, as it was registered as a Dublin-based European closed-end fund. It was structured as a growth Pep that offered 100% return on capital if the market fell.
Jupiter was also active in the Pep market, with plans to launch an investment trust Pep in September. The group, which then had more than £756m investment trust assets under management in 14 vehicles, was making six fully qualifying and five non-qualifying investment trusts available under the scheme.
In other news, the TR European bid for Kleinwort Benson European Privatisation Investment Trust was set to continue, despite being rejected by the Kepit board. The previous week, TR European has published an improved offer for Kepit, which gave the trust's 77,000 shareholders either cash, representing 99.5% of formula asset value, or a combination of cash and shares.
New investment management company Ariasag was about to launch an open-ended Asian Smaller Companies fund back in 1996.
The fund, whose managers made their fee conditional on its taking a compound annual return of 12.5%, was to be an open-ended investment company incorporated in the British Virgin Islands, listed on the Dublin Stock Exchange and advised from Singapore.
With the distinct possibility of the first Labour Government for 18 years becoming a concern for investors in 1996, experts from Deutsche Morgan Grenfell were saying the most significant investment factors would actually be at microeconomic rather than macro level.
Stephen Bell, the group's chief economist, said Labour had learned the lessons of synchronising the political and economic cycle, was getting better advice on markets and had a fuller understanding if the economy.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till