should you buy or sell?

However, current shareholders in the former Invesco trust will be paid a 13.6p interim dividend before the trusts are merged to make up for a lower yield this year.

Fees

Investors in the Murray Income trust pay 0.66pc per year, while Perpetual Income and Growth trust investors are charged 0.73pc.

Aberdeen Standard, the asset manager behind Murray Income, has said it will reduce costs in the trust for six months following the merger. Eventually, it is expected to have an annual charge of 0.5pc moving forward.

Any Perpetual Income and Growth trust investors wishing to sell their shares, will be face a 2pc “charge”. If more than 20pc of the value of the trust is sold this charge may increase.

Should you sell?

While Murray Income investors may suffer a drop in value to a wider discount and a small dilution in shares, they gain lower charges and a larger trust. This should provide security that it will not be sold, merged, or discontinued in the future.

For Perpetual Income and Growth investors, they receive shares in a trust that has returned more and that is cheaper, but that will pay a lower dividend yield.

Ewan Lovett-Turner of Numis Securities, a broker, said the deal worked for both sets of shareholders. “It will lead to reduced costs for both sets of shareholders and we would expect improved trading liquidity.”