Philip Rose and the First Investment Company, 1868–1883

Nigel Edward Morecroft

Chapter 3 in The Origins of Asset Management from 1700 to 1960, 2017, pp 55-101 from Palgrave Macmillan

Abstract: Abstract The Foreign and Colonial Government Trust, an investment company (investment trust or closed-end fund), was instrumental in shaping today’s asset management profession. Overend Gurney, a bank, failed in 1866 so Foreign & Colonial as a pure investment institution with a long-term horizon offered savers an investment channel that was quite different from the deposit channel. Its pooled fund structure made investment available to a wide spectrum of society so middle-class and lower-middle-class individuals, not just the very wealthy, could access it – it made investing available to the burgeoning middle classes in Victorian Britain. With an unusual embedded lottery feature it retained an element of gambling. It invested globally in high-yield, emerging market junk bonds so was risk-seeking within a diversified portfolio.

Keywords: Limited Liability; Government Bond; Asset Management; Investment Company; Limited Liability Company (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psitcp:978-3-319-51850-3_3

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DOI: 10.1007/978-3-319-51850-3_3

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