Shareholders in Aberdeen's Danae investment trust will meet on 11 December to vote on proposals to e...
Shareholders in Aberdeen's Danae investment trust will meet on 11 December to vote on proposals to extend the life of the company from 31 December 2002 to 31 May 2007.
The proposals for the trust, run by Diane Wilde formerly at Gartmore, would see gearing increase with the addition of up to £33m in bank debt and with the placing up to 10 million new zero dividend preference shares which will be launched with a gross redemption yield of 9%.
Existing income shares, whose repayment value is 50p, in December 2002 would convert into a new income share yielding 9.8% with an enhanced repayment value of 61p in May 2007.
The capital shares would convert into one zero dividend preference share, whose value reflects formula asset value as calculated on the company's assets on 12 December 2000, and one new capital share which is more highly geared than its predecessor.
The increase in the company's structural gearing would cause the portfolio yield to be reduced significantly from 7.4% to 5.5%, enabling managers to increase the portfolio's exposure to growth equities to approximately 65% of total assets.
The remaining 35% will be invested in investment trust income shares with a small proportion in high yielding bonds to provide a base of high yield for the income shares.
'Asleep at the wheel'
Nomination deadline - 28 June 2019
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