UK investment trust portfolio strategies before the First World War

UK investment trust companies were at the forefront of financial innovation during the so-called first globalization era before the First World War. This study examines in detail their portfolio strategies using a unique dataset of 115 portfolio observations for 30 different investment trust companies, comprising a total of 32,708 portfolio holdings. Our results reveal strong performance and relatively sophisticated asset management, which was based on a mixture of a buy-and-hold investment strategy and active portfolio management. Investment trusts employed global rather than domestic diversification. The early predominant investment in bonds in the 1880s gradually declined in favour of ordinary and preferred shares. North and Latin American markets were the main geographical target of UK investment trusts, with less appetite for domestic investments and negligible interest in continental European financial securities. There is significant cross-sectional variation in asset allocation between investment trusts; they thus avoided herding behaviour in portfolio choice and developed a wide range of different portfolio strategies

Financial diversification before modern portfolio theory: UK financial advice documents in the late nineteenth and the beginning of the twentieth century

The paper offers textual evidence from a series of financial advice documents in the late nineteenth century and the early twentieth century of how UK investors perceived of and managed risk. In the world’s largest financial centre of the time, UK investors were familiar with the concept of correlation and financial advisers’ suggestions were consistent with the recommendations of modern portfolio theory in relation to portfolio selection strategies. From the 1870s, there was an increased awareness of the benefits of financial diversification - primarily putting equal amounts into a number of different securities - with much of the emphasis being on geographical rather than sectoral diversification and some discussion of avoiding highly correlated investments. Investors in the past were not so naïve as mainstream financial discussions suggest today

Letter from Francis A. Scratchley, London, England, to Major Gillette, American Embassy, July 7, 1920

The William Crawford Gorgas Papers include material created by and written about Gorgas, as well as material created by Gorgas' family members. His diaries and journals illuminate his life and work for the U.S. Army as a surgeon and span the years he worked in Cuba and Panama. The collection includes official reports and other documents Gorgas wrote and collected, as well as articles and other publications written about Gorgas and his work in sanitation and disease prevention, particularly yellow fever. Correspondence, articles, and other items document the numerous awards and tributes Gorgas received during his life and memorials after his death in 1920. In addition to William Crawford Gorgas material, the collection includes other material belonging to Gorgas family members including Marie Gorgas and their daughter, Aileen Gorgas Wrightson. In 1924, his widow Marie Gorgas published William Crawford Gorgas: His Life and Work. This collection includes manuscripts, galley proofs, and published versions of her work

Scenario-Based Performance Engineering with UCMNAV

The analysis of a scenario specification for a new system can address some questions of system performance, in the sense of delay and capacity estimation

Scenario-based generation and evaluation of software architectures

Abstract. Architecture conception is a difficult and time consuming process, requiring advanced skills from the software architect. The tasks of an architect are alleviated if means can be provided to generate architectures that can be evaluated with respect to functional and nonfunctional requirements. This paper discusses an approach for doing so. It centers around a rich feature-solution graph which captures the evolving knowledge about requirements and solution fragments. This graph is used to guide an iterative architecture development process.

The rise of professional asset management: The UK investment trust network before World War I

This paper analyzes the network of UK closed-end investment trust companies, the early pioneers of diversification before World War I, compiling data from different original sources with regard to their directors’ backgrounds and their characteristics as listed companies. Our results reveal that the majority of these early asset managers were merchants, bankers, lawyers, or accountants. The structure of the network is centralized around a few firms with high board sizes and a few directors with many interlocking directorships within the sector. This is a purely structural effect and cannot be explained by individual firm or director characteristics. Our results also show that investment trusts could not be grouped according to their performance. This means that interlocking directorships were equally possible between good and weak performing investment trusts, suggesting that successful asset management was due to team work and a result of collective decision making at board level

Investing in charities in the nineteenth century: The financialization of philanthropy

This study deals with the impact of financialization on the development of charity during the nineteenth century. We argue that this has two key aspects: firstly, the growth of charitable provision via limited companies; and secondly, the financial audit by charities of the claimants who approached them. Limited companies operated mainly in the field of subsidized housing. These offered investors a satisfactory return, but at the cost of requirements regarding the level of rent and the behaviour expected from tenants which restricted the number of potential beneficiaries. The evaluation of claimants by charities was pioneered by, but not limited to, the new Charities Organization Society. This constituted a form of audit, with enquiry into claimants’ behaviour, financial status and prospects, and a refusal to support those seen as unreliable or unpredictable. We argue that these developments have significant implications for the social enterprise movement of the twentieth and twenty-first centuries