Quilter & Co this week launches its Global Enhanced Income Trust, a split cap offering geared ordina...
Quilter & Co this week launches its Global Enhanced Income Trust, a split cap offering geared ordinary and convertible shares.
The trust will be geared by a bank loan denominated in a range of currencies, including sterling, dollar yen and euro, reflecting the underlying distribution of the portfolio.
The portfolio is to be managed by Derek Larcombe and will hold between 50-60 UK listed investment trusts and investment companies.
It will be managed along similar lines as the Quilter Global Income Fund, an authorised unit trust.
That fund is also run by Larcombe and has a first place ranking in the global income sector over three months, one year and three years. The Global Income Fund invests in shares of investment trusts and has a portfolio yield of between 3.5-4%.
Deutsche Bank is the placing agent and sponsor of the trust. The trust is offering geared units to investors consisting of a geared ordinary share and convertible loan stock. IFA commission of 3p is available on each 200p unit sold.
There will be an option to convert the convertibles into geared ordinary shares in approximately 10 years time or to redeem them.
Larcombe said: "The aim of this trust is to maximise total returns over the medium to long term, while achieving high levels of income distribution from the managed portfolio of investment funds."
The plan is to benchmark the portfolio against the FTSE Investment companies index, although Larcombe said this benchmark will not play an important role in asset allocation due to the high yield requirements of the trust.
Marketing of the trust has already started and is set to close on 18 May, with settlement expected one week later. Dealing will start in the last week of May.
The issue is being capped at £100m.
The Global Enhanced Income Trust is being targeted at institutions and professional intermediaries.
The aviation sector's constant evaluation of errors in order to improve safety should be applied to defined benefit (DB) schemes, as too many are repeating the same mistakes again and again, research has shown.
IA sectors – help or hindrance?
Despite multiple complaints
Annuity market worth £4bn in 2017
For ‘distress’ caused