Four new investment trusts waiting to follow in Smithson's footsteps
16th October 2018 10:39
Smithson, the brainchild of Terry Smith, will make its stockmarket debut at the end of this week, but it’s not alone. Kyle Caldwell names the other trusts launching soon.
The third quarter saw a marked improvement in activity for investment trust launches and the signs are that the last three months of the year will be a busy affair.
Four new investment trusts, in addition to Smithson IT, have announced their intentions to launch in the coming months, including Richard Buxton's fund firm, Merian Global Investors, which has been rebranded following its split from Old Mutual. Merian Chrysalis, which plans to raise £200 million, will invest primarily in unlisted companies. It will not be managed by Buxton, however. Instead two of his former Old Mutual colleagues will take the lead: Richard Watts and Nick Williamson, who also manage mid- and small-cap equity funds.
M&G has targeted £250 million for a new investment trust, M&G Credit Income, that will invest in public and private debt, with an emphasis on the latter. Its remit will include investing in asset-backed securities, commercial mortgages, infrastructure-related debt assets, as well as direct lending to small and mid-sized companies.
Elsewhere, Aberdeen Standard Investments has been appointed as manager of a new private-equity focused sustainable investment trust: the Global Sustainability Trust (or GST). As the name suggests the trust will invest in companies that have 'a positive environmental and social impact.' It will do so through backing private companies, but those not yet listed on public markets. GST hopes to raise approximately around £200 million on launch.
Finally, Gresham House is launching a renewable energy investment trust. It is also looking to raise £200 million, but rather than directly appealing to retail investors it is instead targeting institutional and high new worth investors.
Year-to-date, to the start of October, there have been 12 new investment trust launches, raising a total of £1.4 billion. Notable new issues include Baillie Gifford US Growth, JPMorgan Multi-Asset and Tritax EuroBox.
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This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
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