Close plans launch

Close Brothers is in the early to mid stages of launching an investment trust, which would have a portfolio replicating the FTSE 100 index. The Close UK Index Growth Fund, which will consist of only zero shares, will be run similarly to the Close FTSE 100 Income & Growth split capital investment trust, which was launched in 1999. The zeros in Close UK Index Growth Fund will have a negative hurdle rate of -4.36%pa over a five-year fixed life paying a gross redemption yield of 8.25%pa. This means the FTSE 100 could fall 20% over five years and the zeros will still pay out their full re...