Lloyd's opportunities. . .
SENSATIONAL INVESTMENT opportu- nity; never before on offer, buy now while stocks last — who would have guessed from the patter that this was Lloyd's of London? The City's most conspicuous disaster area has been done up for sale. The first signs came this summer, just after Lloyd's accu- mulated losses had brushed the £6 billion mark. Suddenly the lunch-table talk was all of new funds being put together to invest in Lloyd's when the rules allowed it, and, as I said at the time, this was the signal that beneath the debris was a worthwhile busi- ness. Even so, I never expected to find 20 different funds contending to invest in Lloyd's. For most people who want to expe- rience the risks and rewards of Lloyd's, a managed fund with limited liability — you cannot lose more than your stake — will be the right way in. Unlimited liability for unknown risk is an explosive cocktail, and membership of Lloyd's will be for those who know just what they are doing. Which fund? One that is on your side. Some of them are being launched by Lloyd's manag- ing agencies and can be expected to back the particular agency's business. That is what the City calls placing power. Others will pick and choose and switch among the agencies. That ought to mean investor power. One on these lines, and the first fund that caught my attention, is CLM, whose prospectus came out this week. Finally, should you hurry to buy now? I would not be stampeded. With such a wide choice on offer, and with f1112 billion to be raised, surely stocks will last.
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