Aberforth Geared Income Trust (AGIT)
Posted: May 3rd, 2017, 11:39 am
Good afternoon all.
Aberforth Geared Income Trust (AGIT) will wind up at the end of June 2017, and the directors have announced that shareholders will be offered an option to roll over their AGIT shares into a new Aberforth Split Level Income Trust (ASLIT). ASLIT will invest in smaller quoted UK companies. No prospectus for the reconstruction has been issued yet, but ordinary shareholders in AGIT will apparently be able to roll over into ordinary shares of ASLIT at an initial price of 100p, and ZDP shareholders can roll over into ZDP shares of ASLIT. ASLIT will comprise a 4:1 ratio of ordinary to ZDP shares. ASLIT ordinary shares will target a dividend of 4p per share (annual yield 4% based on initial 100p price) for the year to June 2018.
I currently hold AGIT ordinary shares, bought in August 2015, which I regard as having performed well, both on income and capital growth. I am primarily interested in income and I am presently inclined to regard a 4% yield as achievable based on AGIT’s past performance. Therefore, although I will wait for the prospectus before deciding, I am inclined to take a chance and rollover into ASLIT ordinary shares.
Does anyone else here hold AGIT shares? If so what is your initial view on the rollover option?
Dyker
Aberforth Geared Income Trust (AGIT) will wind up at the end of June 2017, and the directors have announced that shareholders will be offered an option to roll over their AGIT shares into a new Aberforth Split Level Income Trust (ASLIT). ASLIT will invest in smaller quoted UK companies. No prospectus for the reconstruction has been issued yet, but ordinary shareholders in AGIT will apparently be able to roll over into ordinary shares of ASLIT at an initial price of 100p, and ZDP shareholders can roll over into ZDP shares of ASLIT. ASLIT will comprise a 4:1 ratio of ordinary to ZDP shares. ASLIT ordinary shares will target a dividend of 4p per share (annual yield 4% based on initial 100p price) for the year to June 2018.
I currently hold AGIT ordinary shares, bought in August 2015, which I regard as having performed well, both on income and capital growth. I am primarily interested in income and I am presently inclined to regard a 4% yield as achievable based on AGIT’s past performance. Therefore, although I will wait for the prospectus before deciding, I am inclined to take a chance and rollover into ASLIT ordinary shares.
Does anyone else here hold AGIT shares? If so what is your initial view on the rollover option?
Dyker