The F&C Capital and Income Investment Trust has benefited from convertible bond exposure in the past three months.
In the trust’s interim management statement for the three months prior to June 30, it says the convertible bonds have enhanced both capital and income for shareholders.
A £1.3m slice of the fund’s total assets was allocated to two convertible bonds but the manager, Julian Cane, was unavailable for further comment.
During the three-month period the fund’s Net Asset Value (NAV) per share had a total return of 10.2%, compared with the FTSE All Share’s return of 10.9%. The statement also says the share price rose 9.7% as the premium to NAV per share widened from 1.5% to 2.3%.
Assets under management also rose from £122.82m on March 31 to £137.34m.
The most significant changes Cane made to the portfolio include adding to positions in Cable & Wireless, Unilever and United Utilities. This is because Cane says they are “attractive yields” which are expected to grow further.
Cane also supported fund raising with HSBC, Inchcape, SIG and Wolseley.