CVC Income & Growth, a UK-based investment trust, is set to issue new shares as it converts to a more traditional closed-end investment company. The trust, which focuses on investing in smaller UK companies, has announced that it will be converting from an open-ended structure to a closed-end structure, allowing it to be listed on the London Stock Exchange (LSE). This move aims to provide greater flexibility and efficiency for the trust's investors, as it will be able to issue new shares and redeem shares more easily. The conversion is expected to be effective from 1 August 2026, with the trust's shares trading under a new ticker symbol.
As part of the conversion, CVC Income & Growth will issue new shares to existing investors, with the trust's net asset value (NAV) expected to be maintained. The trust's investment manager, CVC Credit Partners, will continue to manage the trust's investments, with a focus on generating income and long-term growth for investors. The move is seen as a positive development for the trust, which has a strong track record of delivering returns to investors.
The conversion is also expected to have a positive impact on the UK's listed investment trust market, with other trusts potentially following suit. The move is seen as a way for trusts to provide greater flexibility and efficiency for investors, while also allowing them to take advantage of changing market conditions. The FTSE 100 has been impacted by the announcement, with the trust's shares expected to be listed on the main market, rather than the Alternative Investment Market (AIM).
The conversion is subject to regulatory approval, with the trust expected to provide further updates in the coming weeks. For now, investors in CVC Income & Growth can expect to see changes to the trust's structure and operations, with the aim of providing greater flexibility and efficiency.
The move is also expected to have implications for UK savers and investors, with the trust's shares potentially becoming more attractive to investors seeking income and long-term growth. However, investors are advised to seek advice from a qualified financial adviser before making any investment decisions.