Gartmore Split Capital Opportunities Trust (GSCOT), launched on 5 November, will be approximately £1...
Gartmore Split Capital Opportunities Trust (GSCOT), launched on 5 November, will be approximately £126.2m in size
The trust's capital source consists of a placing of shares, bank debt and a roll over offer made to shareholders in the £61m Gartmore Scotland investment trust (GSIT). Some 46.67% of zero dividend preference shareholders in GSIT decided to roll over. The new trust also received acceptances from 61.68% of income shareholders and 42.69% of capital shareholders. Although GSIT is likely to continue until its scheduled wind up on 31 July 2001 as a listed subsidiary of GSCOT
GSCOT will have a subsidiary company (GSCOT Securities), which is issuing zero dividend preference shares with a redemption yield of 8.3% and a final capital entitlement of 149.5p on 1 November 2004. The trust will be geared through the issuance of the zeros and a bank loan of £19m
Together, GSCOT and GSCOT Securities form a group, which is similar to a split capital investment trust but the ordinary shares do not have a fixed life
The portfolio will be constructed in the main from the shares of split capital trusts, principally geared ordinary shares and conventional income shares
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress