LONDON, UK: Invesco Select Trust Plc, a multi-asset investment trust, has announced plans to restructure its business and increase its dividend payouts to shareholders.

The company, which was launched in 2006, currently has four share classes that allow investors to choose from different asset classes and switch between them tax-efficiently. However, the company said that this structure has become less attractive and more complex for investors, as the demand for larger and more liquid funds has grown.

The company’s board has proposed to merge the UK Equity Income, Balanced Risk Allocation and Managed Liquidity share classes into the Global Equity Income share class, which has the largest net assets and the best performance record. The board said that this would create a simpler and more appealing fund that would benefit from the global investment opportunities and diversification offered by the Global Equity Income portfolio, managed by Stephen Anness.

The board also said that it would offer a 15 per cent. cash exit option to the UK Equity Income shareholders and a full cash exit option to the Balanced Risk Allocation and Managed Liquidity shareholders, at a 2 per cent. discount to the net asset value of each share class. The board expects the restructuring to result in a fund with net assets of around £182 million, which should improve its liquidity and potentially narrow its discount.

In addition, the board said that it would enhance the dividend policy of the Global Equity Income share class, which currently pays three equal interim dividends and a final dividend. The board said that it would increase the interim dividends by 50 per cent. and pay a special dividend of 1.25p per share, subject to shareholder approval of the restructuring. The board said that this would reflect the importance of dividends to shareholders in the current economic environment.

The board said that it would seek shareholder approval for the restructuring and the dividend enhancement at a general meeting to be held in February 2024. The board said that it believes that the proposals are in the best interests of shareholders as a whole and that they would create a more attractive and sustainable fund for the future.

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