BC Asset Management's property income and growth fund is a split-capital
investment trust that invests in commercial property. It consists of
ordinary shares, zero-dividend preference shares and bank debt.
The aim is to provide ordinary shareholders with a high level of monthly
income and other shareholders with a predetermined capital return on May
The backbone of the investment trust is the property portfolio – covering
the office, industrial, warehousing, retail and retail warehousing sectors
– which accounts for 75 per cent of the fund. Properties which have not
already been let will not be considered as part of the portfolio.
The remaining 25 per cent is invested in an income portfolio containing
geared ordinary shares of investment trusts, corporate bonds and equities.
The split-capital structure gives investors a chance to focus on income,
growth or a combination of the two. Commercial property could be an
attractive area for investors because it is not as volatile as investing
directly in equities.
According to Standard & Poor's, the capital shares, income shares and
geared units of BC Asset Management's Yeoman split-capital investment trust
are bottom-quartile while the zero-dividend preference shares are
top-quartile, based on £1,000 invested on a mid-to-mid basis with net
income reinvested over one year to May 21, 2001.