Number of headwinds set to drive trust corporate actions in 2017

Boards reassessing strategies

clock • 3 min read

Investment trust experts anticipate corporate actions will be a key priority for boards this year, after a number of popular vehicles implemented changes to their structure and approach in 2016, as activist investors intensified their attacks on the sector.

Around £4bn of capital was returned to investors in 2016, significantly higher than £2.7bn the previous year, as a result of corporate activity including share buybacks (£1.9bn), tenders and redemptions (£1.6bn) and liquidations or distributions by funds with a realisation strategy (£462m), according to Numis Securities. Ewan Lovett-Turner, director of investment companies research at Numis, said the increase in corporate activity was a result of high-profile names including Electra Private Equity and Alliance Trust coming under fire from activist investors, leading other boards to reass...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment Trusts

Trustpilot