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The Cayenne Trust plc.
On 30th January 2006 Cayenne Asset Management Limited was awarded the investment management contract for Invesco City and Commercial Investment Trust. Now renamed The Cayenne Trust PLC (TCT), the Trust seeks 'to achieve consistent positive absolute total returns' by investing in investment trusts and other closed-end funds. The Manager will seek to ensure preservation of capital and to minimise NAV volatility through the use of derivative style instruments. An investment of up to 15% of the Trust's gross assets will be made into Apollo Fund plc, an existing offshore open-end fund managed by Cayenne Asset Management Limited, which had produced annualised returns of 15.30% since inception in 1997 until February 2006 and is currently closed to new investors. TCT is not charged a management fee on the value of its investment in Apollo.
Income will not be sought for its own sake, but it is expected that dividends will be payable as a by-product of the investment policy. The Trust has initiated a discount management policy in order minimise share price volatility.
The Cayenne Trust PLC has an initial life of 5 years, at which point shareholders will be given the opportunity to vote for a continuation on an annual basis.
Since the change of management, the Trust has undergone a fund raising exercise and assets were increased from £14m to £58.5m by way of a new issue of C shares and CULS.
Cayenne Asset Management Limited receives an annual management fee of 1% charged on total assets. A performance fee of 10% is charged on the out-performance of 5% total return per annum, subject to a high-water mark.
01/04/2006
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