Mercury hopes for second time lucky as investment trust savers run out of patience
Article Abstract:
Discounts are causing considerable difficulties for UK investment trust management companies. Mercury Asset Management's response to this problem has been to buy back shares in its European Privatisation Investment Trust. It announced a scheme to purchase up to 86 million shares at the beginning of 1996, and is now seeking to buy back a further 76 million ordinary shares. It is also planning to offer to buy and cancel warrants issued with the ordinary shares when the trust was launched in 1994. The management of this trust is significant, as it is one of the largest in the sector.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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A reversal of fortunes for managed funds
Article Abstract:
Some observers believe that the investment trust sector may soon experience a revival. Investment trusts offer low costs and high levels of flexibility, but fund manager groups must recognize the need to make changes to the way they operate. The investment trust sector may partly be boosted by the UK government's abolition of advance corporation tax in the 1997 Budget, as it is now much easier to organize tax-efficient buy-back schemes. Unit trusts offer some benefits, but the fact that they charge a lot more than investment trusts cannot really be justified.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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Emerging markets may be the one bright spot in investment trusts, a sector that it still under-performing
Article Abstract:
The investment trust sector is currently not performing well, having been negatively affected by the strength of sterling and concern about the likely impact of the UK government's planned review of capital gains tax. There have been particular problems in the smaller companies section, with almost all the strength in the London stock market in 1997 having come from the largest companies. It is possible that positive trends may start to be seen in the emerging market sector, even though performance there has not been very impressive since 1995.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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