AIB Govett, the UK investment company controlled by AIB Group, will today announce plans to raise up to £200 million sterling (€290.27 million) via a placing and offer for its first split capital trust - a specialised structure with different classes of share that concentrate on different types of return.
The £5.5 billion split capital sector is the only area of the investment trust industry that is growing. It has dominated the trust new issues market for the past two years.
"Part of our job is to provide products that are well-constructed and meet investor demand . . . I don't see (responding to demand) as a criticism," said Mr John Murray, a director of AIB Govett.
Like other new splits, the trust is targeted at income-seeking investors. It offers an initial gross yield of 10 per cent on its ordinary shares. The issue will be sponsored by Williams de Broe.
The vogue for split capital trusts is also being exploited by Murray Johnstone, which announced yesterday that Murray Smaller Markets Trust would be switching to this structure.
