The £45m Premium trust, managed by Martin Currie, is to be converted into a split cap investment veh...
The £45m Premium trust, managed by Martin Currie, is to be converted into a split cap investment vehicle.
The trust's board approved last week the sub-dividing of each ordinary share into one zero dividend preference share, one income share and one capital share.
Investors are to have the option of holding the new shares either in the form of units, comprising one share of each class, or in the underlying separate components.
The proposals will still require the approval of shareholders and the board is to hold an extraordinary general meeting on 28 September 2000. Shareholders holding 73% of the trust's issued share capital have indicated their intention to vote in favour of the resolution to be proposed at that meeting.
Archie Walker, chairman of the Premium Trust, said: "By increasing exposure to lower yielding stocks with greater potential for capital growth, the changes should provide greater flexibility in the future management of the portfolio. We also believe that the proposals will improve liquidity and give the trust a better rating."
The board is not suggesting any changes be made to the trust's investment policy but it does expect to increase the amount of fixed interest holdings in the portfolio from around 15% to just over 20%. There will also be a corresponding decrease in the weighting given to UK equities.
The trust, listed in the UK general sector, is ranked third out of 16 closed end funds, on mid to mid returns of 15.8% over the three months to 6 September.
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