Number of headwinds set to drive trust corporate actions in 2017

Boards reassessing strategies

Jayna Rana
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

Scottish Mortgage keeping activists at bay with ongoing share buybacks

Scottish Mortgage keeping activists at bay with ongoing share buybacks

£2bn spent on scheme so far

Eve Maddock-Jones
clock 04 July 2025 • 3 min read
IBT's Ailsa Craig and Marek Poszepczynski: Biotech innovation will overcome policy noise

IBT's Ailsa Craig and Marek Poszepczynski: Biotech innovation will overcome policy noise

Sector not primary target of US reforms

Ailsa Craig and Marek Poszepczynski
clock 04 July 2025 • 4 min read
Murray Income trust launches 'surprise' strategic review amid lagging performance

Murray Income trust launches 'surprise' strategic review amid lagging performance

Trading at 10.3% discount to NAV

Sorin Dojan
clock 03 July 2025 • 1 min read
Trustpilot