AMONG the first off the mark under the new rules for investing in the
Lloyd's of London insurance market -- full details of which are expected
to be published later this week or early next -- is a new investment
trust, to be sponsored by Rea Brothers and UBS, and to be quoted on the
London Stock Exchange.
Lloyd's rules now permit limited-liability corporate entities to
underwrite in the market, though the fine print has yet to be studied
and intending investment vehicles will have to comply with this.
Underwriting policy and insurance activities for Finsbury Underwriting
Investment Trust are to be managed by Wren Underwriting Agencies
Limited, a leading Members' Agent at Lloyd's, and the investment
portfolio is to be managed by Finsbury Asset Management Limited,
specialist investment trust managers.
Finsbury Underwriting Investment Trust will deliberately limit its
size to #35m with the intention of underwriting up to an overall premium
limit of #60m.
This ensures that capacity can be utilised in a carefully selected
range of syndicates to maximise return.
Among the key points, liability is limited to the amount invested,
investment-trust status provides tax efficiency, quoted status provides
liquidity, and the relatively small size of fund is designed to achieve
a pre-tax return superior to that envisaged by the Lloyd's business
plan.
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