Preference shares return to top line billing

Having achieved a new mandate from shareholders through yesterday’s EGM for both a change of name and of strategy to include “Income”, Train’s fund is now targeting a 4.25% yield by gearing up and putting the borrowed money in preference shares. These provide a steady stream of income to meet the new mandate, and with “prefs” (preference shares) of companies such as HBOS delivering a net yield of 7%, it is an area equity investors exclude at their peril, Train says. ”Private investors get it, but institutions often don’t, although not necessarily because they don’t understand it. For ...