F&C's new Managed Portfolio Trust goes live after 95% rollover

Shares in F&C Managed Portfolio Trust PLC, a new multi-manager investment trust, have begun trading on the London Stock Exchange this morning following a successful rollover of assets held in F&C's legacy managed investment trust portfolio services.

An impressive 95% 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 distinct portfolios of shares in closed-ended listed investment companies - one focused on income, the other on capital growth - enabling investors to benefit from diversification, improved tax efficiency and transparent share price performance.

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. This structure will therefore 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.

Mike Woodward, Head of Investment Trusts at F&C, said: "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."

Peter Hewitt, fund manager of F&C Managed Portfolio Trust, added: "While it is difficult to call the bottom of the market, there is little doubt in my mind that recent declines in the equity markets will provide long-term investors with some great buying opportunities over the coming months. In the case of closed-ended investment companies, this opportunity is enhanced by the widening of discounts to Net Asset Value seen across much of the sector. When markets do recover, holding a portfolio of closed-end investment companies and trusts should be a very attractive place to be as their managers will be able to gear up to buy into any rally."

He added: "Both the income and growth portfolios of F&C Managed Portfolio Trust will invest across a spread of underlying managers, asset classes, strategies and markets, including - where appropriate - some exposure to listed investment companies in non-traditional asset classes. This will mean the income portfolio will be much more diversified than a traditional UK equity income fund and the growth portfolio will also be able to take advantage of emerging areas such as environmental funds, private equity and natural resources."