Premier Global Infrastructure Trust is well diversified away from the UK . It is trading on a discount and there are also zero dividend preference shares as well as ordinary shares issued. Is this a good trust to invest in for dividends, or should I be wary of these points . Any thoughts on this would be greatly appreciated. Many thanks!!
What class of shares are you considering? This is a fund with a complicated financial structure which charges a lot but hasn’t achieved much. The gearing is high so risks are high at a time when ‘bond proxies’ are thought to be vulnerable to rising interest rates. You would need to think about whether there would be funds to repay your capital after the zeroes are redeemed. back. And the discount on funds like Ecofin is higher. Personally, I wouldn’t touch it with the butt end of a bargepole just now.
Thank you for that mickbeaman. I was considering ordinary shares and I was looking at this trust as it was global rather than UK, because of the question marks over PPI links . I think that you are right in light of the zero shares. I will avoid them!!
I’ve never heard of this trust but I’ve been looking for an infrastructure fund to invest in though by the sounds of @mickbeaman 's comment this doesn’t sound like it’s the one for me.
@mickbeaman is right on this one @kevdraw64 . They did try and become more shareholder friendly by cutting the management fee and getting rid of the performance fee but truth is it is a very small trust, that is very highly geared and is yet to demonstrate it can deliver for shareholders.
Best avoided for now.
I’m a bit late to this one, but I hope you all left it alone. @kevdraw64 the ordinary shares collapse before the zeros. Treat zeros like a bank loan and you won’t be far wrong. The real issue with this trust is that it is small and when the ords lose ground the gearing goes through the roof making it even more hairy. Not for the faint hearted. I lost faith when the top holding fell 70% due to not hedging the coal price - it was a power plant… managers should have known this and got them to sort it out. Ecofin seems to be better placed but the sector is not a good one currently.