AIB Govett, the fund management company controlled by Allied Irish Bank, is to launch a new £100 million sterling ( (euro) 141 million) investment trust in the British market.

The target date is February 1st, according to an AIB spokesman. It will be directed at institutional investors, and private investors who put up a minimum of £3,000 sterling. The fund will have two classes of shares, - preference shares with a zero coupon and ordinary shares. There will also be debt, probably around 20 per cent of the fund. Because of the split capital structure (with a zero income return on part of the fund), the fund will be able to offer a yield of 10 per cent. The preference shares may provide a capital gain when the fund is wound up.

The fund is expected to be closed by mid-March. The proceeds will be invested in British gilts and equities and other investment trusts. AIB Govett's other funds include a high income fund with some £50 million and the Strategic Fund with almost £400 million.