Fund management in the interwar period: UK investment trust portfolio asset allocation in the 1920s

Dimitris Sotiropoulos; Janette Rutterford; Daniele Tori; Antonis Kyparissis

doi:10.1093/ereh/heac019

Fund management in the interwar period: UK investment trust portfolio asset allocation in the 1920s

Dimitris Sotiropoulos, Janette Rutterford, Daniele Tori, Antonis Kyparissis

Research output: Contribution to Journal › Article › peer-review

Abstract

This study investigates the portfolio asset allocation of UK investment trusts between 1914 and 1928 using a unique hand-collected dataset of 41 companies, which comprises 40,875 portfolio holdings. UK investment trusts not only survived WWI without major losses but also had a remarkable performance in the 1920s, which led to a wave of new incorporations. The 1920s was a period of significant shifts in investment trust portfolio composition and our analysis examines the main reasons for this. We show that investment trust managers were able to adjust quickly to the new socioeconomic circumstances and secure high profitability for their shareholders.

Original language	English
Journal	European Review of Economic History
Early online date	12 Jan 2023
DOIs	https://doi.org/10.1093/ereh/heac019
Publication status	E-pub ahead of print - 12 Jan 2023
Externally published	Yes

Keywords

UK investment trusts
diversification
asset management
financial markets
interwar period

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10.1093/ereh/heac019

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abstract = "This study investigates the portfolio asset allocation of UK investment trusts between 1914 and 1928 using a unique hand-collected dataset of 41 companies, which comprises 40,875 portfolio holdings. UK investment trusts not only survived WWI without major losses but also had a remarkable performance in the 1920s, which led to a wave of new incorporations. The 1920s was a period of significant shifts in investment trust portfolio composition and our analysis examines the main reasons for this. We show that investment trust managers were able to adjust quickly to the new socioeconomic circumstances and secure high profitability for their shareholders.",

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AB - This study investigates the portfolio asset allocation of UK investment trusts between 1914 and 1928 using a unique hand-collected dataset of 41 companies, which comprises 40,875 portfolio holdings. UK investment trusts not only survived WWI without major losses but also had a remarkable performance in the 1920s, which led to a wave of new incorporations. The 1920s was a period of significant shifts in investment trust portfolio composition and our analysis examines the main reasons for this. We show that investment trust managers were able to adjust quickly to the new socioeconomic circumstances and secure high profitability for their shareholders.

KW - UK investment trusts

KW - diversification

KW - asset management

KW - financial markets

KW - interwar period

UR - http://dx.doi.org/10.1093/ereh/heac019

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DO - 10.1093/ereh/heac019

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SN - 1361-4916

JO - European Review of Economic History

JF - European Review of Economic History

ER -

Fund management in the interwar period: UK investment trust portfolio asset allocation in the 1920s

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Keywords

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