Five years ago the Foreign & Colonial Investment Trust entered the FTSE 100 for the first time. Back...
Five years ago the Foreign & Colonial Investment Trust entered the FTSE 100 for the first time. Back then the trust, managed by Michael Hart, had assets of £1.8bn and was trading at a 1.2% premium to NAV.
M&G was preparing itself to launch the Equity Investment Trust to be run by Patrick Harrington. This vehicle was planned for February 1996 and the group was looking for the launch period to straddle the tax years 1995/96 and 1996/97. The group was also planning to put in a regular savings plan.
Rachel Medill, head of corporate communications at M&G, said: "A savings plan certainly helps bring an investment trust to a premium. But that was only a secondary consideration for us as our existing investment trusts have not had any problems staying around a premium."
Hill Samuel was also increasing its fund range with the launch of its emerging markets unit trust to be run by Alan Boorer. The fund had an annual management fee of 1.75% and was described as a "high risk long term growth product."
Henderson Touche Remnant pledged itself to convert all its unit trusts to Oeics as soon as possible. Unit trust managing director Richard Eats, said: "It is the simplest, clearest and cleanest way of pricing funds and this will help to expand the market as we will have a system ordinary investors can understand."
The European Commission was promising to end a three year deadlock over amending the Ucits directive to allow for the inclusion of money market funds, fund of funds and master feeder funds.
Trouble continued to brew at Dunedin as managers departed to join CastleRock Capital Management, set up by former Dunedin investment director Gordon Anderson with US backing. Speculation was growing that Dunedin would look to merge with Edinburgh Fund Managers.
Guaranteed Income Bonds (GIBs) were coming under the spotlight with the Revenue questioning whether these should qualify as life products as so many were being promoted as investments. Scottish Mutual revealed it had pulled a planned GIB launch in March 1995 because of these concerns.
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