We thought readers of the website might find it useful if we started to include more information on the split capital trusts, warrants, subscription shares and convertibles available in the investment company sector. As a start, here is a sheet that looks at the data for Zero Dividend Preference Shares for May 2014. We’ll aim to release data on the rest over the next few weeks and then keep it updated once a month.
Explanation of the terms used:
The maturity date is the date on which the ZDP is due to be repaid. The current GRY (gross redemption yield) is the return you would earn each year if you bought the ZDP at the current mid price. The final redemption price is the value you get (in pence per share) if you hold the ZDP on its maturity date (provided there are sufficient assets in the company to repay the ZDPs). The final asset cover is the amount by which the current gross assets of the fund exceeds the amount needed to repay the ZDPs – the lower the number, the riskier the ZDP is.