View more on these topics

BSF Investments launches Zero Preference Growth Trust

BFS Investments is launching an investment trust specialising in zero dividend preference shares.


The Zero Preference Growth Trust is a split capital investment trust, which will be capped at £60m of which half will come from bank debt.


The trust will have two share classes, zero dividend preference shares and growth shares. The zero shares will have an expected gross redemption yield of 6.75 per cent after five years.


The launch costs will be capped at 1 per cent, with an annual management charge of 0.25 per cent.


BFS&#39 investment director Tony Reid says: “Activity in the split-capital sector has led to new zeros being created and a temporay over supply of stock.


“This has caused new issuers to offer zeros on redemption yields which represent a considerable premium over the equivalent dated gilt.”

Recommended

TMO completes 7,000 mortgage applications in first six months of 1999

The Mortgage Operation completed 7,000 mortgage applications worth almost £500m in the first half of 1999.The packager says the £500m figure ranks it alongside the top 10 lenders in terms of lead generation.It says that its success in the first six months to the end of June 1999 is due to having invested heavily in […]

M&G appoints UK equities fund manager

M&G has appointed a new fund manager to its UK equities income team.Hakan Salih is joining M&G from Hill Samuel Asset Management. He will report to head of UK equities Sam Morse and will be part of the income team headed by Richard Plackett.M&G chief executive Michael McLintock says: &#34Hakan is a great addition to […]

Government pensions policy based on false analysis

The Government&#39s new pension policy is based upon false analysis of the modern labour market according to a report in today&#39s Financial Times.This accusation is levelled at the Government by the National Association of Pension Funds.Its chairman Alan Pickering says some of the assumptions on which the policy is based are &#34at best only partially […]

ABI issues stricter guidelines on genetic testing

The Association of British Insurers is tightening its rules on the use of genetic testing according to the Financial Times.It says the ABI is launching a stricter code of practice governing the use of testing. The new guidelines are intended to offer greater protection to people who pay more for insurance because of unfavourable test […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment