Troy Income & Growth trust to take over two portfolios
Two investment trusts are set to be merged into Francis Brooke’s £78.5m Troy Income & Growth Trust (TIGT), subject to regulatory approval.
The boards of the £29m Albany Investment Trust and the £10m Grampian Investment Trust have separately invited the fund to become their sole successor vehicle after reconstruction.
All three trusts have similar objectives in that they aim for income and capital growth through investing predominantly in UK equities. Furthermore, Troy Asset Management is already the investment manager of Grampian.
Both proposed moves, which will be put before shareholders for approval, will be carried out through section 110 schemes of reconstruction of Albany and Grampian.
The transactions will be structured to avoid any dilution in net asset value (NAV) for TIGT shareholders. Further details of the proposals will be published “as soon as practicable”.
A statement from TIGT says: “The benefits of the above proposals for TIGT shareholders include an increase in TIGT’s size enabling it to attract a wider range of investors which, in turn should improve the liquidity of its shares and also result in a reduction in TIGT’s fixed operating costs as a percentage of shareholders’ funds.”
Shareholders in Albany and Grampian will benefit from TIGT’s discount and premium control policy, the companies say, as well as a broadly similar dividend yield combined with a lower total expense ratio.
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