LONDON, UK: JPMorgan Multi-Asset Growth & Income plc (MATE) and JPMorgan Global Growth & Income plc (JGGI) have agreed to combine their assets in a scheme of reconstruction that will result in the liquidation of MATE and the issuance of new JGGI shares to MATE shareholders.
The deal, which is subject to shareholder approval, will create a larger and more diversified global equity portfolio with a market value of around £1.1 billion.
The boards of both trusts believe that the merger will benefit MATE shareholders by giving them access to JGGI’s strong performance, improved share rating, greater economies of scale and higher liquidity. JGGI’s investment objective and policy will remain unchanged, and the trust will continue to be managed by JPMorgan Funds Limited, with Helge Skibeli, James Cook and Tim Woodhouse as portfolio managers.
JPMorgan has agreed to cover all the direct corporate costs of the transaction, which will be offset by a fee waiver of its management fee on the enlarged JGGI’s net asset value. The number of new JGGI shares issued to MATE shareholders will be based on the net asset value of each trust on an agreed calculation date. The aggregate net asset value of the assets to be transferred under the scheme is currently estimated to be approximately £71 million.
The Chair of MATE, Sarah MacAulay, commented: “Your Board has been conscious for some time that MATE’s relatively small size reduced its appeal to investors, while prospects for the Company’s growth have been limited by difficult market conditions. Unfortunately, size does matter due to the implications for costs and for the liquidity of MATE’s shares.
The Board believes that the proposed combination with JPMorgan Global Growth & Income plc offers shareholders exposure to a large, liquid company with significantly lower costs and a well-established dividend policy. Furthermore, it offers a degree of continuity, given that approximately 50 per cent. of MATE is currently managed by the same investment team that has an excellent performance record from investing in a globally diversified portfolio.”
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