Scottish Investment Trust : to merge with JP Morgan in £1.2bn deal
October 20, 2021 at 09:41 am EDT
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Scottish Investment Trust is dropping its in-house management team to combine assets with JP Morgan’s Global Growth & Income (JGGI) arm to create a new £1.2bn enlarged trust.
The deal is expected to complete in the first quarter of next year if approved by shareholders, and the Scottish Investment Trust will be voluntarily liquidated through a scheme of reconstruction under the plans. The new trust will take on the JGGI name.
Scottish Investment Trust said the merger represented “the most compelling outcome” for its shareholders, who according to the plans will own shares in JGGI on a formula asset value basis.
These shares will be worked out by calculating the net asset values of both parties, and adjusted for each company’s allocations of costs.
The larger of the two, JP Morgan, will make a contribution to the costs of the transaction that represents eight months worth of management fees, paid to the new larger trust.
Scottish Investment Trust chairman James Will said the decision to merge with JP Morgan’s JGGI unit was inspired by its “style-agnostic total return approach”, “index-beating performance”, and “attractive level of dividend to investors”.
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The Scottish Investment Trust PLC is a United Kingdom-based investment company. The Company's objective is to provide investors, over the longer term, with above-average returns through a diversified portfolio of international equities and to achieve dividend growth ahead of United Kingdom inflation. The Company seeks to achieve its investment objective by investing in an integrated global portfolio constructed through an investment process whereby assets are primarily allocated on the basis of the investment merits of individual stocks rather than those of regions, sectors or themes. The Company invests in various sectors, including financials, energy, materials, communication services, consumer discretionary, health care, industrials, consumer staples, information technology, real estate, and utilities. The Company's alternative investment fund manager is JPMorgan Funds Limited.