Aberdeen has said its Tech & Income and Media & Income split caps are not going to suspend dividend ...
Aberdeen has said its Tech & Income and Media & Income split caps are not going to suspend dividend payments unlike the Euro Tech & Income trust, writes Adam Lewis.
Euro Tech & Income announced on 25 July that it was to cease paying a dividend.
Piers Currie, head of investment trusts at Aberdeen, said that analysts estimate that to pay dividend the Tech & Income Trust needs to pay out £13.5m a year, and at present the trust is on target to make that level of income.
Currie said that Euro Tech & Income suffered because it had a high weighting of its income portfolio in European bonds, which in July fell 10%. By contrast Tech & Income is more diversified, it has UK, US and European bonds as well as £16m in income shares. The trust has also been holding £46m in cash and £37.9m in global technology shares.
He said Aberdeen's Media & Income split capital trust is also on target to meet the annual dividend cost requirement of £12.5m, due to the large content of its portfolio, 50%, in high income and high yielding securities. Dividend payment dates for Tech & Income are in March, June, September and December, dates for Media & Income are in January, April, July and October.
Last week Cazenove wrote a report that said the sharp correction in markets had meant highly geared splits had come under pressure and warned of a systemic collapse as a result.
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