AIB Govett is to launch a Guernsey offshore closed end fund called the Asian Income & Growth (Gaig) ...
AIB Govett is to launch a Guernsey offshore closed end fund called the Asian Income & Growth (Gaig) as a roll-up vehicle for shareholders following the wind-up of its Emerging Markets investment trust in July 2001.
The restructuring comes in advance of the wind-up date of the Emerging Markets fund, following the withdrawal of two of its major shareholders.
Shareholders in the old trust have until 23 March to decide whether or not to take up the share offer or take the cash option. Dealings in Gaig will commence on 9 April 2001.
The investment objectives of Gaig are to provide shareholders with the potential for capital growth from investments in a range of companies operating in the Asian and Pacific region outside Japan, as well as a high level of income from investment in split-capital investment trusts and other closed-end funds and corporate and sovereign bonds.
Chris Dangerfield, head of Far East development at Govett and based in Singapore, will be fund manager. The portfolio will be split into growth and income. The growth portfolio, expected initially to comprise around 50% of the fund, will be invested in Asian (ex-Japan) and Pacific securities. The income portfolio will be invested about 80% in high-yielding securities of investment trusts and other closed-end companies and the balance in corporate and sovereign bonds.
James de Sausmarez, managing director of investment trusts at Govett, said the split-cap trust is scheduled for an eight-year life. After this there will a vote on the future of the company.
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