View more on these topics

Britannic seizes on revival

Britannic Asset Management is capitalising on the recent investment trust revival with the introduction of the Britannic global income trust.



The trust aims to deliver growth and a high level of income by investing in global equities and split capital ordinary shares.

There are two share classes. The geared ordinary shares have a target yield of 8.75 per cent a year and the zero dividend preference shares are expected to return 9 per cent in 2005.

Diversity is ensured by the growth portfolio&#39s global focus, which means risks are spread geographically. However, as the investment relies on a certain degree of underlying growth, there will always be an element of risk, particularly in respect of the gearing.

The trust would be suitable for more sophisticated investors. Other potential investors may find the structure confusing and may not feel confident investing in a split capital investment trust like this.

According to Standard & Poor&#39s the Britannic smaller companies investment trust is ranked 20 out of 28 trusts based on £1,000 invested on a mid-to-mid basis with net income reinvested over three years to November 13, 2000.

Recommended

IHT strategy to hold clients&#39 interest

Aberdeen Asset Management has introduced the global champions fund to exploit the themes of globalisation, innovation and communication.Looking at how the fund fits into the market, Storer says: “Obviously, when equity investment is making people money, there is always room for new funds. But even if equities suffer a global wobble, there should still be […]

Invesco and Perpetual to rebrand

Invesco and Perpetual are to rebrand next spring following last month&#39s £1bn takeover.The core range of UK onshore funds will be rebr anded Invesco Perpetual, alth ough this will not mean a merging of investment styles.It has not yet been decided how the offshore range is to be branded.The two brands are to remain separate […]

Life offices wasting £22m with outdated admin, claims BACS

Insurance companies are missing out on up to £22m in annual savings by failing to adopt modern payment methods, according to automated clearing house BACS.The figure represents the costs involved in issuing cheques and includes the cost of stationery and administration rather than using the automated payment method direct credit.BACS says the insurance industry issues […]

Merrill Lynch welcomes MFR reform

Merrill Lynch Investment Managers has welcomed reform of the MFR announced in the pre-budget speech last week. However, Merrill is calling for more consultation with the Government on the proposed alternatives which it believes are unlikely to change the conservatism of trustees and companies. Merrill says the pre-budget report confirmed the role of trustees in […]

Industry under fire over pension freedoms

By Jamie Clark, Business Development Manager, Royal London Recent articles in the media have raised concerns about the new pension freedoms. One perceived problem is that across the industry, trustees and providers are not necessarily allowing people to take full advantage of the pension freedoms in situ. This is backed up by a recent survey by […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment