Doesn’t this just sound horribly dangerous?

Victorian England was not known for its progressive views. But one element of that strait-laced society was highly advanced in its thinking.

The finance industry, even then, was helping companies to raise money by issuing bonds and Law Debenture Trust, founded in 1889, was a key part of that nascent market.

The group was established to ensure that bonds were administered properly and that, if companies fell into problems, investors were treated fairly.

OK, old established, know what they’re doing, almost certainly some regulatory protection against competition as well. Now this:

Law Debenture still performs that task today. Over the past 130 years, however, the group has evolved considerably, not least in the past 15 months, during which time it has acquired a new chairman, chief executive and finance director.

The top team are determined to galvanise growth at Law Debenture and the shares, at 576p, should respond.

Anything like that reminds me of Willy Hutton at The Industrial Society. No, obviously not the same etc. But, you know, can’t help thinking of eager new management in to shake up old established expertise….

7 comments on “Doesn’t this just sound horribly dangerous?

  1. Agreed. This used to be a solid investment trust, a mix of secure fee income from administering debentures and special purpose vehicles plus un flashy investment in boring blue-chip stocks. The new management better not fuck with the boring but reliable nature of the fund

  2. Also, Will Hutton might not be the best comparison…. How about that serial destroyer of value Adam Crozier…. The man who turns everything into shit

  3. Yeah Dio–they might roll your barrel down the hill as in “2000 Maniacs”.

    Or 2000 Remainiacs as seems more apt these days.

  4. The finance industry, even then, was helping companies to raise money by issuing bonds and Law Debenture Trust, founded in 1889, was a key part of that nascent market.

    The group was established to ensure that bonds were administered properly and that, if companies fell into problems, investors were treated fairly.

    “despite Brexit, looming 130 years in the future and making any decisions difficult and risky”

  5. …in the past 15 months, during which time it has acquired a new chairman, chief executive and finance director.

    The top team are determined to galvanise growth equality, diversity and ethical investment at Law Debenture and the shares, at 576p, should respond.

    Response: Time to Sell

  6. Galvanise is certainly a scary word when it comes to investment trusts. What the sensible investor wants is a team that will each day quietly make sensible investment decisions, mostly “hold: the benefit of switching is less than the cost”. We do not want someone to change for the sake of change unless the whole portfolio has suddenly become overvalued by a group of unwise investors buying into it (serously implausible – one or two stocks or sectors, possibly but the whole portfolio at the same time: YMBJ) .
    In my youth Law Debenture was a good reliable investment with its fee income (net of expenses) giving a modest but useful boost to the returns from its Investment trust investments. I should be sad to see it destroyed.

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