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Perpetual income & growth trust in bid for Securities Trust

Perpetual Income & Growth Investment trust has made a takeover bid for the Securities Trust of Scotland.

If the bid is successful, the combined trust would be one of the 10 biggest investment trusts, with total assets of between 600m and 800m, and would have around 30,000 private investors.

The board of the Securities Trust of Scotland refused to enter negotiations on a merger in July and September last year.

In making the bid, Perpetual Income & Growth quotes its performance since 2000, claiming 1,000 invested in the Perpetual trust in 2000 is worth 1,898 today, with 246 of aggregate dividends paid, while it claims 1,000 in the Securities Trust of Scotland is worth 868 today, with 189 of aggregate dividends paid.

Invesco head of specialist funds and distribution director Andrew Watkins says: “The last rites have been read to the investment trust industry many times before. Investment trusts continue to survive only through innovation. Consolidation, such as this action represents, is a way of ensuring the industry continues to evolve and survive.”

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