The management of Diverse Income Trust is considering increasing the company's capital base in order to cut costs.
The trust's board has suggested making a C share offer in order to raise up to approximately £50m of gross proceeds in June 2014.
The fundraising would be used to reduce the company's ongoing cost ratio as well as broaden its investor base following a successful period since launch.
The trust, managed by Gervais Williams (pictured), traded at a premium to NAV of 5.1% as of 28 March, compared to an average discount for the UK growth and income sector of 1.5%.
In a statement the trust said: "Taking into account the company's performance since IPO, the current rating of its shares, and the manager's outlook for potential investee companies and the company's underlying portfolio, the board is considering increasing the company's capital base through a pre-emptive offer of C shares."
Revealed – successes across all 11 categories
Latest news and analysis
Letter from academics
'Digital transformation' of sector
Up from 14% in 2017