Advance plans trusts merger

Advance UK Trust, the closed-end funds arbitrageur, has put forward the idea that Scottish generalist investment trusts create a single multi-manager structure through a series of friendly mergers. The idea follows the ejection of the £571.2m Second Alliance Trust from the FTSE All-Share and FTSE Mid 250 indices on liquidity grounds. Because of its ejection, index tracking funds are selling shares in the trust, which remains listed on the stock market, and, because it is illiquid, the price is dropping. James Carthew, investment director and manager at Advance UK, said: 'A gap ...