Gartmore's second split capital investment trust, provides a rollover vehicle for investors in its existing Scottish National Trust, which is due to reach the end of its seven year investment cycle on September 30, 1998.
The company hopes Gartmore SNT will attract a further £100m from the £530m invested in the original trust. This is in addition to the £180m already re-invested into its first rollover vehicle the Scottish National Trust II which was opened last year.
The Gartmore SNT is different from its rollover predecessor, in that it offers new investors a safety first investment opportunity, through its Capital Combination Unit. The unit is designed to provide a minimum return at redemption equal to that of the initial investment. According to Gartmore, it will be able to honour this commitment even if the trust's assets fall by up to 2.7 per cent a year throughout the seven year term.
The trust aims to provide a yield of 1.3 times the FTSE Allshare index through investment in UK blue chip and mid cap companies, with an emphasis on total return, rather than on providing a high income yield at the expense of capital growth.