Britannic Asset Management is to launch a split capital investment trust within weeks, containing a ...
Britannic Asset Management is to launch a split capital investment trust within weeks, containing a 100% capital guaranteed income share class offering 7%pa income, writes Robert Stock.
The guarantee on the income shares is to be provided by Britannic itself and the group is looking to place up to £75m of these shares on the market, including £20m via Hargreaves Lansdown and £5m through Chelsea. The two broker groups expect to sell the majority of the guaranteed income shares through Isa and Pep wrappers.
In addition, Britannic is looking to raise up to £150m through ordinary shares and up to £45m from a zero dividend preference share class. The zeros yield 9% and have initial cover of 1.19 times. The trust has a lifetime of five years and winds up on 11 August 2006.
The trust is scheduled to begin trading on 10 August with the offer period closing on 7 August and the offer for subscription closing on 6 August.
Of the assets, 50% will be invested in a portfolio of mainly FTSE 350 stocks. A further 20% will be invested in a portfolio of bonds and the final 30% will be made up of shares from other split caps.
Last year, the group launched its Global Income Trust. The Britannic Asset Management brokerline is 0845 6012885.
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