Shareholders of the Invesco Global Equity Income trust (IGET) have approved resolutions to combine with the underperforming Franklin Global trust at it’s latest general meeting, the firm announced yesterday.
The trust will retain 96.3% of Franklin Global’s assets, with just 3.79% of shareholders opting for a cash exit.
This merger was first proposed in November and will result in a combined trust with net assets of £445m to be run by Invesco managers Stephen Anness and Joe Dowling.
See also: Invesco Global Equity Income Trust and Franklin Global Trust propose merger
James Carthew, head of investment company research at QuotedData, said: “The 96% rollover from Franklin Global to IGET is a brilliant result for the Invesco trust, which appears to be extending its lead over arch-rival JPMorgan Global Growth and Income.”
Invesco Global Equity Income is the best-performing strategy in the IT Global Equity Income sector over the past three and five years, up 72.3% and 114.3%, respectively.
Meanwhile, Franklin Global has struggled, languishing in the bottom quartile of the IT Global sector over the past one, three, five and 10 years, according to FE Analytics. Over the past 12 months, it has been down 5.8%.
