Earlier this year activist hedge fund Laxey Partners lobbied the UK's largest investment trust, Alliance Trust, to increase its dividends by dipping into its capital profits as well as its revenue (read more on this). Although Laxey's proposals on Alliance Trust were defeated at the annual general meeting (AGM) last month, the prospect of other investment trusts boosting dividends by dipping into their capital is a possibility following a legal change that came into effect on 6 April.
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