The zero-dividend preference share market continues to throw up opportunities despite shrinking by a quarter in the last three years, says F&C.The asset class has fallen out of favour since the high-profile problems in the split-capital investment trust market, shrinking from 2.7bn in 2002 to 2.1bn in 2005, but new zeros are now being created which are not linked to investment trusts. Fund manager Peter Hewitt points to the 26m zeros issue by property specialist Economic Lifestyle to finance a portfolio of retirement properties as one example of the increased variety of issuer now in the market. He notes that several high-profile investment trusts have also had successful rollovers in the past year, including Jupiter second split and Aberdeen development capital, bringing new issuance to the market. While Hewitt expects the market to continue shrinking in the short term, he says this will be offset to an extent by Invesco recovery and New Star financials rolling over in the next couple of months, with a further 40m of issuance. Investec fund manager Alastair Mundy, who runs the firm’s capital accumulator portfolio, also remains upbeat on the asset class, holding a 35.2 per cent weighting in zeros and a further 11.7 per cent in synthetic zeros. He says: “The fund continues to benefit from the rally in share prices on the back of steady economic growth.” Hewitt says: “A significant development was the issue of 26m of zeros by Economic Lifestyle in September. Given the success of this issue, we expect other companies, particularly in business sectors which are backed up by real assets, to consider this method of financing. “This opens up the prospect for the zero universe to start growing again and move beyond its investment trust roots.”
The Government’s U-turn on public-sector pensions will make the job of selling reform in the private sector much harder, warns Aegon head of corporate affairs Francis McGee. McGee says last week’s agreement between the Government and public-sector unions – which allows existing workers to continue to retire at 60 while the pension age for new […]
David Robinson – Cheif Executive, Bright GreyI am delighted to see the launch of MM’s campaign, highlighting many of the issues that have been concerning the protection industry for some time. Bright Grey has always argued that a decision to buy protection products should never be based on price alone as, overall, customer value is […]
The Invesco Perpetual Aim VCT will offer 25m in new ordinary shares in January 2006. The trust launched in June 2004 and was the most successful by a new entrant into the VCT market, raising 25.1m through an offer for subscription.
An IFA with offices in London and Manchester has lost his credit licence, guilty of housing benefit fraud. FT Management Group IFA Theophilus Sonalike has just lost his appeal against the OFT revoking his licence. Sonalike, working out of offices in Brunswick in Manchester and North Woolwich in London, was convicted of fraud in January […]
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 […]
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Claims management companies must be more specific on separate permissions and competency when they under the remit of the FCA, according to HM Treasury. Under rules proposed in the Treasury’s latest consultation paper, claims management companies will operate under six sectors – housing disrepair, industrial injuries disablement benefit, personal industry, financial products and services, criminal […]
Knowing what assets each operator will accept and with what conditions is becoming increasingly difficult The recent well-publicised events concerning Sipp operator asset acceptance have focused the mind of a number of advisers. We have been fielding enquiries about our own Sipp and the asset classes we as a Sipp operator would consider. But this […]
Investment trust sales may come under pressure due to new EU rules, experts have warned. The potential benefits of gearing on investment trusts risk being overlooked as new cost reporting rules make them look more expensive compared with open-ended funds. Traditionally, closed-ended funds have looked attractive based on lower costs compared with other structures, as […]