The Isis trust, which took a disappointing pounds 26.6m, enhanced its asset value by selling the right to its dividend income to institutional shareholders by way of a special class of shares. Isis has monthly income and savings plans which, it is hoped, will work together to prevent Isis shares trading at a substantial discount.
Allan Munro, Ivory & Sime's managing director, said at least six non-executive directors of the group's other investment trusts wanted to know whether a similar structure could be used to narrow discounts on their trusts, and Ivory & Sime was considering the possibilities.
The fund manager reported an 8 per cent increase in pre-tax profits to pounds 4.9m. Earnings per share jumped by 19 per cent to 10.75p, thanks to a buy-in of shares last year.
Funds under management rose by 12.7 per cent to pounds 3.3bn, despite client losses of about pounds 150m. A final dividend of 4.75p increases the total by 13 per cent to 6.5p a share.Reuse content