The First Global Emerging Markets Investor: Foreign & Colonial Investment Trust 1880-1913
Explorations in Economic History (Forthcoming)
45 Pages Posted: 18 Mar 2012 Last revised: 2 Oct 2013
Date Written: July 2, 2013
The Foreign and Colonial Investment Trust is the oldest surviving closed end fund, having been established in 1868. Its early success and emulation were related to its identification of a missing market - the provision of a wholesale diversified vehicle for the investing public. This paper is a micro-study of this leading investment trust during the First Era of financial globalisation. The history of this flagship fund over more than three decades provides an insight into the relative success of this financial innovation as well as into the risk and returns of investing in emerging markets over a century ago.
Keywords: portfolio choice, closed end funds, mutual funds, financial innovation, emerging markets, financial crisis, contagion, globalization
JEL Classification: G11, G23, G01, N24
Suggested Citation: Suggested Citation