Tribune Trust Index investment trust is to enjoy net gains to its shareholder register at the expens...
Tribune Trust Index investment trust is to enjoy net gains to its shareholder register at the expense of its sister trust,Tribune Trust Managed Pool.
In 1998 Tribune was reorganised with its portfolio split into two separate pools. The international general portfolio is managed by Mark Baring at Baring Asset Management, while the FTSE All Share tracker portfolio is run by Barclays Global Investors. At the time of the reorganisation it was decided to allow shareholders in either portfolio to switch between the two classes once a year starting in July 2000. Investors are able to exit one portfolio at NAV and buy shares in the other pool.
Last week the trust announced 227,000 index shares are to be converted into active shares while 287,000 active are to be converted into passive index tracking shares. Peter Walls, investment trust analyst at Credit Lyonnais, believes investors were attracted to the index shares as, looking ahead, they are more likely to trade at close to NAV. He pointed out Edinburgh UK Tracker investment trust currently trades at a premium. As at close of business on 24 July the index pool of Tribune was trading on a discount to NAV of 7.1%.
Over the year to 24 July the NAV of the actively managed portfolio rose by 13.9% while the shares returned 14.1%.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till