Investment company Utilico is aiming to raise £100m with a new investment trust backing emerging markets and utilities.
The Utilico Global Income investment trust will seek to pay an initial 5 per cent dividend yield, and will invest in a portfolio of global equities and corporate bonds.
The trust will seek to pay dividends quarterly. Utilico as a business is known for focusing on emerging markets and investments in utility companies, and said this trust will focus on those areas of the market.
The board of the trust aim to raise up to £100m with the initial public offering (IPO) of this trust in the coming weeks.
Jason Hollands, managing director for business development and communications at Tilney, said: “The team should be thought of first and foremost as specialists investing in utilities and infrastructure rather than as purely emerging market managers, while Utilico Emerging Markets is the existing mandate that advisers may be familiar with – indeed, it is on our buy list.
"Utilities and infrastructure companies typically generate very dependable cash flows and so have very good dividend characteristics. Emerging market dividends have also been growing at pace over several years, so a mandate focused on income generating stocks – with the scope to also invest in bonds - is well within Utilico’s range of expertise.”
Vivien Gould, chairman of Utilico Global Income trust said: “ I am pleased to be announcing our intention to float such a compelling new investment trust.
"Charles Jillings and the team have demonstrated their ability to invest in well-managed, cash generative companies in the listed utility and infrastructure sectors.
"Their 13 year track record is testament to this. For investors seeking a greater yield and regular income, Utilico Global Income plc is a new investment trust they should consider.”
David.Thorpe@ft.com
