Investors should benefit from "greater economies of scale" as well as lower fees and improved liquidity after the blockbuster merger of the £581m Murray Income Trust (MUT) and the £642m Perpetual Income and Growth trust, analysts have predicted.
PLI and MUT have respective historic yields of 6.9% and 4.5%, but shareholders expect this to fall. Brown noted it was not certain PLI would hold its dividend, while shareholders will receive a pre-merger distribution of 13.6p per share as the trust returns its revenue reserves.
MUT said it would prioritise the maintenance of its dividend hero status, having increased its pay-out for the past 46 years.
"That is very important to our shareholders, so we intend to keep progressing that record," Rogan said.
On the ‘beauty parade' process of choosing a new manager for PLI, Laing said the board received "well into double figures" submissions from interested parties, before narrowing that down to a long list with the help of broker Winterflood and consultant Mercer.
Rogan, meanwhile, said it had been "very exciting going through the process". "If you are in a beauty parade run by Mercers and you win it, then you have to have very strong people, process and performance behind the proposition," Rogan explained.
"We have got that in our manager, Charles Luke and the ASI team."
ASI will be appointed as manager of the trust as soon as the merger is approved, Laing said, in order to transition the portfolio of which 15% to 20% will be directly transferred to MUT with the rest sold for cash and then transferred to MUT.
"Murray Income will therefore be able to manage the portfolio exactly the way Charles Luke and the team want it," Laing said, adding ASI would do the transition process for free.