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Trust weaklings ask for Troy takeover
The Albany and Grampian investment trusts have asked Francis Brooke of Troy Income & Growth to take them over.
The boards of the £29 million Albany and the £10 million Grampian investment trusts have both invited Troy Income & Growth (TIGT), an investment trust also run by Brooke, to become the successor vehicle into which their shareholders can roll into as they call it a day.
Albany is currently managed by Rathbones with a similar approach to TIGT, although its three-year share price growth of 34% is poor compared to the 91.4% return from Brooke's trust.
Albany shareholders should enjoy a boost if the deal goes ahead as the 19% discount on their shares is eliminated.
Grampian, which recently converted to investment trust status, is already run by Brooke.
The takeovers will expand TIGT's size to around £120 million and should improve liquidity in its shares and help keep down costs, its board said.
Analysts at Numis welcomed the moves and called for more corporate action to weed out underperforming investment trusts. 'There are still numerous funds with a market cap of under £50 million, and we believe that boards of these funds should consider returning capital, rolling into another vehicle or changing manager/mandate if there is no viable strategy to attract demand.'
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