This follows a successful rollover of assets held in F&C’s legacy managed investment trust portfolio services.
The firm says that 95 per cent of investors in F&C managed investment trust plans – including the ISIS Investment Trust Share Plan, PEP, ISA and TrustGuard Plan – opted to rollover into the F&C Managed Portfolio Trust, providing the new vehicle with gross assets of £42.8 million at launch.
The F&C Managed Portfolio Trust has two portfolios of shares in closed-ended listed investment companies – one focused on income, the other on capital growth.
Holders of the Income shares are entitled to all the dividends of the company which are expected to be paid quarterly. A particularly innovative new mechanism is that any net income generated by the underlying Growth Portfolio will be transferred to the Income Portfolio in exchange for a capital contribution of an identical amount.
F&C says this structure will help boost yield distributions for Income Share holders and enhance capital returns for Growth Share investors by providing a cost and tax efficient means of re-investing income.
Head of investment trusts Mike Woodward says:”We are absolutely delighted to have achieved such a high level of rollover in what are unquestionably challenging markets. The 95% conversion rate has surpassed our best expectations and was made possible by the strength of support from Independent Financial Advisers for whom the twin portfolio structure and yield switching mechanism have proved particularly attractive features. The result is a diversified and tax efficient investment trust whose shares, unlike most other investment trusts, are wholly owned by retail investors.”