BFS Investments is rolling out a split cap investment trust, which will be available as a rollover v...
BFS Investments is rolling out a split cap investment trust, which will be available as a rollover vehicle for investors in the Tor investment trust.
As previously reported in Investment Week, the split cap, which will be called the BFS UK Dual Return Trust, will offer zero dividend preference shares and income shares as well as capital shares. Retail investors can access the fund through geared ordinary units, which will combine one income share and one capital share and offer a net yield of 8.5% or growth units, which will combine one zero with two capital shares. The directors of the Tor investment trust are recommending to shareholders that the investment trust be wound up and are offering BFS UK Dual Return as a rollover opportunity.
The zeros in BFS UK Dual Return will have a gross redemption yield of 8.25% and a life of seven years. The fund will be split 65% in UK equities and around 20% in reverse convertibles, with this part of the portfolio managed by John Holder. The income shares portion is to be managed by Keith Bunyan, while Alan Brunsden is running the UK equity portfolio.
IFA commission on growth units is 2.95% initial and 3% on the geared units. The split cap will be available through BFS's Isa, which pays 3% initial commission and up to 0.5% renewal.
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