JPM Multi-Asset Growth & Income to merge into JGGI

Process expected to be completed by the end of March


The £2.1bn JP Morgan Global Growth & Income (JGGI) trust will be involved in yet another merger after its board agreed heads of terms with JPMorgan Multi-Asset Growth & Income (MATE) over a proposed combination.

The proposal will see MATE’s £71m assets move over to JGGI, marking the latter’s third merger in recent years having previously combined with JP Morgan Elect and Scottish Investment Trust.

MATE shareholders are expected to vote on the proposal in March.

In a stock exchange announcement this morning (24 January), the trust’s board said its shareholders would benefit from lower ongoing charges as part of the enlarged JGGI. Their ongoing expense ratio will drop to 50bps from 110bps.

Sarah MacAulay, chair of MATE, said: “[The 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% of MATE is currently managed by the same investment team that has an excellent performance record from investing in a globally diversified portfolio.”

JGGI is a top quartile performer in the AIC Global Equity Income sector over one, three and five years, according to FE fundinfo data.