First UK trust launched investing in Israeli firms

THE first UK-authorised investment trust investing in Israel was launched this week. The fund, offered by Societe Generale Strauss Turnbull, will be entirely invested in Israeli companies.

Economic recovery in Israel is expected to be boosted by a reduction in defence costs, removal of the Arab boycott, increased tourism and the opening of trade borders to 350 million people.

David Cohen, SGST director of corporate broking, said: 'The country is spending on its infrastructure and will benefit from a highly educated workforce, particularly those coming in from the former Soviet Union.'

The Israeli government aims to privatise about 40 companies over the next five years. Eleven are planned for this year alone.

Minimum investment in the fund is pounds 1,000. The offer for shares closes on 3 March.