In the wake of the negative publicity surrounding split capital investment trusts, Investec Asset Ma...
In the wake of the negative publicity surrounding split capital investment trusts, Investec Asset Management's Extra Income Trust has won a resounding vote of approval as the majority of investors, instead of cashing in on the wind-up of the split caps trust, decided to roll over £6m into another zeros fund.
Launched in November 1995, the Extra Income Trust followed a conservative investment strategy, which allowed holders of Zero Dividend Preference Shares to receive full payment representing capital gains of over 8%pa over the life of the trust.
This success of the Extra Income Trust was demonstrated by a vote of confidence from 965 investors who rolled over their funds into Investec's latest fund of zeros, the Capital Accumulator Fund.
Managed by Alastair Mundy, the Capital Accumulator Fund is purported to have delivered "low risk performance in difficult market conditions", as exemplified by its outperforming of the FTSE All Share by 30.1% since its launch in July 1999.
The Capital Accumulator Fund is aimed at investors seeking a regular, tax efficient 'income' with gains subject to capital gains tax rather than income tax.
|Investec Capital Accumulator Fund|
|Estimated redemption yield after charges||7.78%|
|Minimum investment||£1,000 lump sum|
£100 per month
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