Mark Barnett’s £489.25m Perpetual Income & Growth Investment Trust (PIGIT) is to issue B shares allowing distributions to avoid income tax charges.
The new B shares will enjoy identical rights to existing shares, but when dividends are paid to ordinary shareholders, an equivalent amount will be paid in cash to B shareholders in the form of a capital distribution.
Invesco Perpetual says these capital distributions will be taxed as chargeable gains rather than income, enabling shareholders to structure their investment in PIGIT in a tax-efficient manner.
"PIGIT is one of our most popular investment trusts with a long and successful track record," Invesco Perpetual head of specialist funds Graeme Proudfoot says.
"It makes perfect sense to seek to raise capital to enlarge it and we and the board believe that this is an innovative approach to helping investors optimise their investment options.
"Existing shareholders will be encouraged by the board to consider taking up their rights to these new shares and marketing to new investors is expected to take place during March and April with a view to completion in May."
The new B shares will not be dilutive to existing, ordinary shareholders and will be available exclusively from Collins Stewart Europe.
