Deutsche Bank says that the abolition of Advance Corporation Tax and the on going 'its' campaign have provided an opportunity for investors.
It forecasts benefits from deregulation of European stock markets and greater harmonisation of tax in the EU.
On-line internet dealing will revolutionise the sector for private investors and retail investors will own 55 per cent of the sector by 2005 compared with around a third now.
Analyst Martin Fothergill says: “We criticised trusts for share price under performance and apathy among directors and fund managers. Now we have discounts narrowing, thanks to the combination of share buy backs and the new marketing impetus led by 'its'.”