The CI Income Fund, which started trading on 3 November, has already invested around 75% of its capi...
The CI Income Fund, which started trading on 3 November, has already invested around 75% of its capital according to fund manager Jim Goodey.
Around £70m was raised at launch for the Guernsey domiciled split capital investment trust. Some £52.5m of this came through a placement of zero dividend preference shares and ordinary shares, with additional capital provided by a seven year fixed interest bank facility of up to £17.5m.
The portfolio will focus on issues by other Channel Island domiciled investment companies, at the start of 1998 there were only two such vehicles with combined assets of £60m, there are now 21 with combined assets of about £3.2bn.
Goodey said: "Having considered the conditions present in the market we were anxious to increase our exposure as quickly as possible."
The portfolio will buy a mixture of split capital investment trust shares, income shares, ordinary shares, zeroes and warrants, last week adding a number of capital shares to the fold.
According to Goodey, the remaining 25% of the portfolio which is yet to be invested, will be held until a suitable opportunity is found. Goody said he this remainder will not be completely invested for some time.
During the initial period, 85% of the portfolio is to be invested in high yield income and ordinary shares issued by investment trusts with a balance aiming for capital growth.
The fund is open for investment to individuals and institutions, however, investors are not able to access it through an Isa.
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