Govett Investments has introduced the Asian income and growth fund as a rollover vehicle for its emerging markets investment trust.
This split capital investment trust aims to provide high income and capital growth. by investing in Asia and the Pacific region, excluding Japan. It consists of 60 per cent highly geared ordinary shares, with 40 per cent bank debt.
The portfolio is divided equally between a growth component and an income component. The growth portfolio will be invested in Asian and Pacific stocks, excluding Japan. The income portfolio also invests in these stocks, but includes shares in other investment trusts and a small percentage in bonds. This part of the portfolio aims to produce income at nine per cent a year.
This investment trust is likely to be of interest to sophisticated investors who already have a core portfolio of UK, Europe and global funds. They may want to add a more daring element with higher risks and the potential for higher rewards. However, the downturn in global stockmarkets may affect the confidence of investors, who could decide to steer clear of highly volatile regions like the Far East.
According to Standard & Poor's the Govett Asian smaller companies trust is ranked 12 out of 14 funds based on £1,000 invested on a mid-to-mid basis with net income reinvested over three years to April 13, 2001.