BC Asset Management has raised £97.75m for the launch of its US Growth & Income closed end fund Som...
BC Asset Management has raised £97.75m for the launch of its US Growth & Income closed end fund
Some 40% has come via Royal Bank of Scotland, which is providing the company with an eight-year fixed interest loan facility.
The company's asset pool will be split into two roughly equal divisions, one of which will be investing in US securities, managed by Andrew Neesom. The other, managed by David Bruce, will invest in split capital investment trusts and closed end funds.
According to a spokesman for company brokers Hoare Govett, the principal investment objective of the trust is to provide shareholders with a high level of income coupled with the potential for capital appreciation from a portfolio investing in US growth companies.
Initial annualised net yield on the ordinary shares is expected to be 8.5% at the 100p issue price, with figures based on the dividend which managers expect for the period to 31 October 2001. Based on current market conditions, the investment manager forecasts the portfolio should yield approximately 5.2% for the period ending 31 October 2001.
Expectations are that dividends will be paid quarterly and proposals have been put forward that the first dividend will be declared ex-dividend in February 2000. Dealings in ordinary shares should commence on Thursday 19 October 2000. At launch the company placed 60 million ordinary shares at a value of 100p each.
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