Seneca Global Income & Growth trust to introduce discount control mechanism

Will come into effect in July 2016

Jayna Rana
clock

The board of the £66m Seneca Global Income & Growth trust plans to introduce a discount control mechanism next year to regulate the trust's share price.

The board of the Seneca Global Income & Growth trust has announced plans to introduce the new policy at its next annual general meeting in July 2016. The use of discount control mechanisms has become more popular over recent years, with more trusts implementing them to tackle volatility and shareholder concerns. However, some analysts have questioned whether this move is always the best option for investors, as share price volatility can be an advantage of closed-ended fund investing. Are DCMs taking the fun out of investment trusts? The Seneca trust's discount has narrowed by in...

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

Trustpilot