Dividend detail to be published in AIC push for transparency

The Association of Investment Companies (AIC) has committed to publishing more detailed dividend information for each investment trust on its website in a fresh push for transparency.

Dividend detail to be published in AIC push for transparency

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The new information will delve into trusts’ dividend history and will also reveal whether dividends were paid from its income or capital reserves.

Details of dividend cover in each investment trust will also be published online, as will the level of revenue reserves held to top up dividends in stretched years.

The move aims to make it easier to find out if a trust pays dividends out of the income received from the portfolio or are paying dividends out of capital profits.

Ian Sayers, chief executive at the AIC, said: “Paying dividends from capital profits is an additional income advantage of investment companies.

“It helps meet shareholder demand for income in this low interest rate environment and potentially can lead to investment companies being rerated to trade on lower discounts, another benefit for shareholders.”

He added: “We are now publishing enhanced dividend information on our website to help investors in their decision making.

“It’s clear that the demand for income remains strong and we want to provide as much data as possible to help investors research investment companies that will meet their income needs.”