Aberforth unveils split

GEARED VALUE & INCOME TRUST TO BE LAUNCHED WITH a PORTFOLIO OF UK SMALLER COMPANIES

Aberforth is launching a split capital trust with an underlying portfolio of UK smaller companies. Aberforth Geared Value & Income (AGVIT) will not contain corporate bonds and paper from other split caps. The placing and offer for subscription is being sponsored by Cazenove. The decision comes four months after a report by Cazenove, which said a sharp correction in markets had meant the highly-geared capital structures of barbell splits had come under pressure, and warned a new round of weakness in high yielding trusts as a result of dividend cuts could result in its systemic collapse. ...