Aberdeen Asset Managers has brought in the European growth and income trust, a split capital investment trust that is aimed at investors who are looking for growth and income.
The trust will invest in a portfolio split into two halves. The growth section will make up sixty-five per cent of the portfolio and will invest in continental European equities. The income section of the portfolio is divided between an income portfolio of 20 per cent and a bond portfolio of 15 per cent of the overall investment.
The income part of the portfolio will aim to provide a yield that will differ depending on what class of share is invested in. There are two types of shares that are available, income shares that will provide a yield of 10.5 per cent and zero dividend preference shares that will have a yield of 9 per cent.
The yields for this fund are quite high and therefore have a higher level of risk. However the ability to invest in a range of different sectors, from European equities to bonds, will mean that the risk is spread about.
According to Standard & Poor’s the Aberdeen income and growth trust is ranked 5 out of 8 funds based on £1,000 invested on a mid-to-mid basis with net income reinvested over one year to October 30, 2000.
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