Old Mutual in first investment trust launch - Merian Chrysalis


#1

Originally published at: https://whichinvestmenttrust.com/old-mutual-in-first-investment-trust-launch-merian-chrysalis/

The new trust will invest in unlisted smaller companies and is led by managers with a proven track record. Old Mutual Global Investors is aiming to raise £200 million to invest in a Guernsey domiciled investment company, listed in London, the Merian Chrysalis Investment Company. Old Mutual Global Investors (OMGI) is in the process of…


#2

Not enough information here on how they’ll invest. How substantial a minority holding will they take? Are they buying with private equity, or in funding rounds, and how long will the holding period be? what if the companies never want to IPO.

Be interesting to see the prospectus when it arrives.


#3

I agree we need more info @lukas but I like the sound of this. It sounds like a neat way to capture solid growth if the managers can get it right. No doubt the underlying investments will be illiquid and this trust will tank in a downturn but all being well this could work out very well in the long run.

i do have some concerns about the performance fee. For me it needs to be over the business cycle, not just on any one year. I need to find out more about this. I’m not against performance fees totally but they need to be fair and measured over one year only is far to short a period in my view, it needs to be 3 years minimum.


#4

Maybe not the first? http://citywire.co.uk/new-model-adviser/news/old-mutual-south-africa-trust-to-close/a278650


#5

Well spotted there @David_M it closed in 2006.