By Jenne Mannion The shares of a new investment trust, Exeter Selective Assets, go live next week...
By Jenne Mannion
The shares of a new investment trust, Exeter Selective Assets, go live next week on the London Stock Exchange.
The new trust, which was the roll-over vehicle for Exeter Preferred Capital investment trust, launched nine years ago, is unique in that it holds three classes of shares, but is not a split-capital vehicle. These include low-risk capital growth shares (invested in zeros), slightly higher-risk capital-growth shares (a portfolio of investment trusts), and high-yielding shares that will deliver a 10% running yield. An investment team led by Chris Whittingslow, investment director of the Exeter Investment Group, is managing the trust.
"Unlike a split-capital trust, where each of those shares would feed off a single portfolio, this company is a conventional investment trust with an umbrella structure where each share class has a dedicated portfolio. Each portfolio manager does not have to compromise to try to suit a number of objectives according to the different share classes. Likewise there is not a pecking order in terms of shares and the three types of shares are equal in line, after the bank borrowing," Whittingslow says.
The trust will have 40% gearing of gross assets.
Exeter Preferred Capital had £135m under management and boasts strong performance results.
Since November 2008
Share issue oversubscribed
PARTNER INSIGHT: For many advisers, outsourcing to a multi-manager or discretionary fund manager makes sense, allowing them to focus on the adviser-client relationship
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An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client