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Investment trust policy changes double year-on-year
2011-07-26 09:12:23 Source: fundweb

A total of eight investment trusts have changed their stated investment policies since the start of the year, more than double the number recorded in 2010, the Association of Investment Companies (AIC) says.

Most of them have lifted restrictions on the geographical location of their investments, while some have broadened their investment universe to allow allocation to other assets.

The Securities Trust of Scotland, which traditionally focused on UK growth and income, had had shareholder approval to change its remit to an international focus.

Similarly, the Blue Planet International Financials trust has changed its policy to allow the manager to invest globally rather than just Europe. The board of the Edinburgh Investment Trust has also voted to increase the level of global investment from 15% to 20%.

Elsewhere, the Pacific Assets has broadened its mandate to allow up to 20% of its assets to be invested outside of the Asia-Pacific region.

Since the start of 2011, investment trusts have not only voted to broaden their investment universe in terms of geographic location but also the type of assets they can invest in. The Princess Private Equity, for example, is to change its investment policy from investing in other funds to investing directly in a diversified portfolio of private equity and private debt investments.

Meanwhile, the Martin Currie Portfolio is to amend its investment policy from aiming to achieve long-term capital growth in excess of the capital return of the FTSE All-shares index, to instead achieve long-term capital growth in excess of the capital return of the FTSE World index through investing in a diversified portfolio of UK and international stocks.

Ian Sayers, the director general, says boards have been quick to review their investment policies and where necessary have proposed changes.

¡°Not only does this highlight the advantages of an independent Board but also the role for shareholders in voting on these issues.,¡± he says. ¡°In the approach to retail distribution review, investment companies are demonstrating their dexterity, responding to changing economic and investment environments.¡±

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