View more on these topics

Pavilion moves up a gear

Pavilion Asset Management has made its debut on the investment trust scene with the Pavilion geared recovery trust.

This split-capital investment trust aims to provide a combination of income and growth by investing in undervalued stocks mainly in the UK and in the shares of other investment trusts.

A growth portfolio makes up 60 per cent of the trust and this focuses on larger companies with relatively low share prices that look likely to recover in the future. There are no sector weightings and which gives the trust freedom to invest wherever share prices look set to recover. Given the downward movement of global stockmarkets, this may be an ideal time for the theme of recovery stocks.

The remaining 40 per cent goes into an income portfolio consisting of income and geared ordinary shares of other split capital investment trusts.

There are two types of share — geared ordinary shares with a yield of 8 per cent a year and zero-dividend preference shares with a yield of 9 per cent a year for six years. This enables the trust to meet the different objectives of investors.

The trust would suit more experienced investors who are looking for either a combination of income and growth through the ordinary shares, or those who will be satisfied with a pre-determined capital return through the zero-dividend preference shares.

However, investment trusts like this tend to invest heavily in other investment trusts which themselves invest in investment trusts. This suggests a lack of diversity and may be a source of risk for investors.

Recommended

Rise in stakeholder takeup

New research from clearing house BACS reveals there has been as significant rise in the number of firms planning to introduce stakeholder.Of the 350 business of a range of sizes which took part, almost a quarter 23 per cent will definitely offer a stakeholder scheme, compared with only 9 per cent of organisations interviewed last […]

Parsoli adds an Islamic option for Muslim investors

Muslim financial specialists Parsoli UK has introduced the Parsoli global Islamic equity fund.The fund is an open-ended investment company and has been aimed at Muslim investors in the UK and Europe who are looking for a financial product that complies with Shari’ah.Shari’ah means to be compliant with both Islamic law and the Koran, and as […]

Scot Wids appoints two to international operations

Scottish Widows Group has made two new appointments as part of a re-structuring of its international operations business. Mike Smith has been apppointed international business development director, following 25 years with Scot Wids in which he has held positions in IT, marketing and customer services. Deborah Moon has been recruited as technical manager for Scot […]

10 per cent drop in equity fund charges

Average equity fund charges fell by more than 10 per cent in the firstquarter of this year, according to new data from Lipper. The average annual management fee for UK-based equity funds dropped to1.14 per cent from 1.29 per cent. The average front-end charge on funds fell to 4.1 per cent from 4.51 per cent […]

2

Britain's “Forgotten Army”: The collapse in self-employed pension membership – and what to do about it

Pension scheme membership among employees has risen by more than five million in the past four years because of the policy of automatic enrolment into workplace pensions. But Britain’s army of 4.4 million self-employed people, who account for one in seven of the workforce, are not covered by automatic enrolment. Pension coverage among the self-employed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com