Strong inaugural results from Investors Capital Trust

Despite the challenging backdrop for financial markets, the trust's net asset value has outperformed its benchmark and substantially outperformed the average return of its peer group.

The trust also paid distributions of 5.35p per share representing a yield of over 6.4 per cent at 31 March 2008.

Rodger McNair, ICT's manager, commented: "Strong UK stock selection together with a cautious investment strategy served to protect shareholders' assets during a difficult period for financial markets and resulted in a strong performance relative to our peers and outperformance of the benchmark."

ICT has a unique structure which offers investors the choice of two shares - A shares and B shares. Both share classes have the same net asset value and pay the same level of cash distribution, the key difference between them being the tax treatment of the cash distributions on each class. The cash distributions on the A shares are paid by way of dividends and taxed under income tax rules. The cash distributions on the B shares are paid in the same amount and at the same time as the cash distributions on the A shares but are taxed under the Capital Gain Tax (CGT) regime.

"The recent changes to the CGT regime are very good news for holders of Investors Capital Trust B Shares. Holders of B shares do not pay any tax on receipt of their cash distributions. It is only when the shares are sold that CGT may become due and, as of April 6th, this would be at the lower rate of 18%, down from 40%, even for a higher rate taxpayer. However, if an investor holds on to their shares they pay no tax - they effectively receive a tax free income," McNair added.