Classes of share, structural gearing and duration
The Trust has a split level capital structure consisting of 107,331,000 Ordinary Shares and 40,249,000 Zero Dividend Preference (ZDP) Shares. The Trust’s investment objective is to provide Ordinary Shareholders with a high level of income, together with the potential for income and capital growth, and to provide ZDP Shareholders with a pre-determined final capital entitlement of 160.58p on the planned winding up date of 30 June 2031.
Full details of the Trust's capital structure, including the rights attached to the Ordinary Shares and ZDP Shares, are set out in the Trust's Articles of Association. These are available to view or download from our Literature Library.
All net income earned by the Trust is attributable to the Ordinary Shares and the Trust intends to distribute substantially the whole of its net income in each financial year in accordance with the Trust’s investment objective.
In addition, Ordinary Shareholders are entitled to the net assets of the Trust on a winding up, after all liabilities of the Trust have been settled and the entitlements of the ZDP Shares have been met. Ordinary Shareholders will also be entitled on a winding up to receive any undistributed revenue reserves of the Trust (which will be paid in the form of a preliquidation dividend or during the course of the liquidation), subject to all creditors of the Trust having been paid out in full and even if the cover multiple on the ZDP Shares is at the time less than 1.
The ZDP Shares were issued with a targeted final capital entitlement of 160.58p per ZDP Share on a winding up of the Trust on the planned winding up date of 30 June 2031.
The holders of ZDP Shares are not entitled to receive dividend payments.
The Trust’s capital structure is such that the underlying value of assets attributable to the Ordinary Shares will be geared relative to the rising capital entitlements of the ZDP Shares. The Ordinary Shares are therefore geared by the ZDP Shares.
Accordingly, the Ordinary Shares should be regarded as carrying above average risk.
The Trust has a planned life lasting until 30 June 2031 and the Directors are required by the Articles to convene a general meeting of the Trust on, or within the three months prior to 30 June 2031, at which a special resolution will be proposed to wind up the Trust voluntarily by not later than the planned winding up date.
As these arrangements are designed to ensure that the ZDP Shareholders will be entitled to realise their investment, weighted voting provisions shall apply in respect of this resolution so as to ensure that this resolution will be passed if any shareholder votes in favour. However, before this date, the Directors will examine means whereby holders of Ordinary Shares may effectively continue their investment in a tax efficient manner while allowing the ZDP Shareholders to realise their investment. The Directors may be released from the obligation to call a general meeting if a special resolution has been passed to that effect not later than 30 June 2031.
By clicking on the Accept button and downloading documentTitle, you acknowledge that you have read and understood the important information contained within this disclaimer and within our Privacy Notice, Risk Warnings and Important Legal Information pages.
This material is not intended as an offer, invitation or solicitation for the purchase or sale of any investment, nor is its issuance intended to give rise to any other legal relations whatsoever and must not be relied upon for the purposes of any investment decision.
The information contained on the following pages is subject to updating, revision and amendment. All expressions of opinion are subject to change without notice and do not constitute advice and should not be relied upon as a promise or representation as to the future.
Persons resident in countries other than the UK should consult with their professional advisers as to whether they require any governmental or other consents in order to enable them to invest in any product described in these pages.
I confirm that I am a resident of, and presently located in, the United Kingdom, the Channel Islands or the Isle of Man.
Thank you for your interest. Legal restrictions prevent us from allowing you further access to this Aberforth Geared Value & Income Trust plc document.
If you believe you are a resident of, and located in, a jurisdiction where viewing is permitted by law, and you can confirm that to us, please contact enquiries@aberforth.co.uk.
Viewing the materials you seek to access may not be lawful in certain jurisdictions. In other jurisdictions, only certain categories of person may be allowed to view such materials. Any person who wishes to view these materials must first satisfy themselves that they are not subject to any local requirements that prohibit or restrict them from doing so.
The information contained in this website, including any material you may hereafter access, does not constitute an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption from registration. No public offering or sale of securities in the United States is contemplated. The information contained in this website, including any material you may hereafter access, is not to be provided by you to any other person, in electronic form or otherwise, and is not to be accessed, published, copied, forwarded or otherwise disseminated in or into the United States.
If you are not permitted to view materials on this webpage or are in any doubt as to whether you are permitted to view these materials, please exit this webpage.
By proceeding, you agree to comply with the terms set out above and confirm that you are a resident of the United Kingdom, Channel Islands or Isle of Man, and you are accessing this website from within the United Kingdom, Channel Islands or Isle of Man.