Framlington is launching the Select Investment Trust Pep which can invest in up to seven funds managed by other companies.
The Pep offers two options – the Framlington option and the worldwide option. The former allows investment in up to four Framlington trusts.
The worldwide option offers a choice of seven trusts managed by other groups. These are the Mercury European privatisation trust, 3i Group, TR European growth trust, Foreign & Colonial investment trust, Edinburgh US tracker trust, Fleming Japanese investment trust and Schroder AsiaPacific trust.
At least 25 per cent of the total investment must be in Framlington funds.
Initial commission is 3 per cent and renewal is 0.5 per cent.
Both options include an exit fee of 1 per cent but it is unlikely that the charge will apply to investors when Peps are replaced in 1999.