Following a hiatus of investment trust launches this year, there are a slew in the pipeline with three trusts currently in the process of raising capital.
Backing a UK recovery is the launch of Tellworth Investments ‘Best of British’ investment trust, to be managed by veteran UK equity duo Paul Marriage and John Warren.
The managers are looking to invest in UK companies they believe are materially undervalued, as well as companies that are global market leaders in their field or pioneers in British technology.
The launch comes as tensions are running high in the Brexit trade negotiations and an uptick in coronavirus cases are quickly evaporating hopes of a ‘V’ shaped economic recovery.
But Mr Marriage and Mr Warren, who previously co-managed Schroder UK Dynamic Smaller Companies Fund, believe fundamental shifts in the UK economy will pave the way for “exciting investment opportunities at attractive valuations”.
Tellworth British Recovery & Growth Trust's initial public offering (IPO) will be open until 5 October, and investors can subscribe directly via PrimaryBid, or on most of the large investment platforms.
Also launching its IPO this week is Home REIT, focussed on tackling homelessness in the UK. The company is looking to raise £250m to buy accommodation to let on long-term leases to registered charities or housing associations, which receive housing benefit from local or central government.
Home REIT is targeting a yield of 5.5 per cent on the initial price, to be paid quarterly, and aims to achieve a total shareholder return of 7.5 per cent per year over the medium term. The IPO is accessible on a number of platforms and is due to close at 5pm on 6 October.
The third open IPO is Triple Point Energy Efficiency Infrastructure Company (TEEC), which is hoping to raise up to £200m to invest in assets that will ‘facilitate the transition to a low carbon economy in accordance with the UK government’s environmental targets’.
If successful the company will list on the specialist fund segment of the London Stock Exchange. It will look to generate a total annual shareholder return of 7 to 8 per cent, most of that coming from dividends from which it will target a 5 per cent yield in the first year.
Private investors cannot participate in this IPO via platforms, but they can apply directly via Triple Point.
