The JP Morgan US Smaller Companies Investment Trust (JUSC) and Brown Advisory US Smaller Companies (BASC) have agreed to merge.
The deal would see BASC reconstructed and its shareholders offered the opportunity to roll their investment into an enlarged JUSC, or sell for cash.
The enlarged trust would continue to be managed by JP Morgan Asset Management in line with the existing investment objective and policy.
The trusts said they would benefit from greater scale and liquidity, Lower costs, enhanced discount management and established teams an investment processes.
The annual management fee for the combined vehicle would be cut to 0.65% on the first £200m of net assets and 0.60% thereafter.
JUSC is managed by Don San Jose, alongside co-portfolio managers Dan Percella and Jon Brachle.
Shareholder documentation is set to be published by mid-November 2026, with the transaction expected to complete in December 2026 or shortly after, subject to approvals.
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Dominic Neary, chair of JUSC, said: “I am delighted to announce a proposed combination with BASC and look forward to welcoming those shareholders who participate in the rollover option.
“I believe that US smaller companies are some of the most exciting in the world, with JUSC’s investment trust structure providing a marked advantage in accessing these opportunities.
“There are significant benefits of this combination for all shareholders. With increased scale ever more important in the investment trust market, shareholders in the combined JUSC will benefit from an enlarged vehicle, with improved liquidity and lower ongoing costs.”
QuotedData senior analyst Matthew Read said: “When BASC launched its strategic review in July, we questioned whether it could satisfy shareholders wanting a substantial cash exit while retaining the scale needed to remain viable.
“The board appears to have reached much the same conclusion. Its solution looks sensible: shareholders wanting out can receive cash at just a 0.75% discount to residual NAV, while those who still believe in the US smaller companies opportunity can roll into JUSC without triggering an immediate capital gains tax liability.”
