Continued from page 1 Hugh Everitt, former manager of the £1.4bn CGU Prestige Portfolio Trust Monthl...
Continued from page 1
Hugh Everitt, former manager of the £1.4bn CGU Prestige Portfolio Trust Monthly Income Plus unit trust, is to manage the Progressive Geared Income.
The trust has a simple capital structure of 60% geared ordinary shares, yielding 9%, and 40% consisting of bank borrowings.
The underlying portfolio will have a similar split; 60% will be invested in fixed interest paper, with the other 40% of the portfolio in investment trust shares.
The BFS Asian Assets fund will be partly managed by Scott McGlashan at Jade Absolute. To obtain the required income element BFS will use its expertise in reverse convertibles. Some 35% of the capital structure is a yen-denominated bank loan.
Three types of paper will make up the remaining 65% of the capital structure. Some 25% will be a new type of share linked to the Topix index.
If the index doubles over the trust's seven-year life investors will receive 230p from an initital NAV of 115p.
Some 34% will be made up of 85p income shares, yielding 10% and repaid at 100p in 2005, with 6% of the structure consisting 15p capital shares. Investors can also purchase units, yielding 8.5%, of one income share and one capital share.
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