Troy's Brooke eyes more investment trust mergers

Francis Brooke, manager of the Troy Income & Growth trust and £780m Troy Trojan Income fund, said his trust is positioning for further mergers following its takeover of two rivals.

His £90m vehicle is set to absorb the £29m Albany and £10m Grampian trusts this month, with over two-thirds of shareholders opting to roll over their investments rather than encash them. Brooke said he wants the trust to be on a select “golden list” of investment companies that can benefit from the Retail Distribution Review, and highlighted its discount control mechanism as a crucial factor. The Income & Growth trust was trading on a premium of 2.1% as of the end of July. “If you can be seen by the market as a trust which is committed to a zero discount policy, that can be attractive...