Circulars have been published today to support the proposed merger between JPMorgan Global Growth and Income and Henderson International Income. The proposal was announced in February and although markets have had a wobble since, nothing has changed in the detail although the JPMorgan trust has given back some of its long term outperformance of the Janus Henderson one. For a little while during this period, the JPMorgan trust moved to trading at a small discount but is back at a premium today.
Henderson International Income has announced a pre-liquidation interim dividend of 3.9p per share today. HINT shareholders receiving New JGGI shares under the scheme will not be entitled to receive JGGI’s fourth interim dividend for the year ending 30 June 2025, which will be declared in May 2025.
HINT’s portfolio will now be realigned so that it can roll straight into JGGI’s.
There is a meeting of JGGI shareholders planned for 9 May, and then a HINT shareholder meeting on 12 May. Assuming everything is approved as planned, the meeting to appoint HINT’s liquidators will be held on 28 May. The last day for trading shares in HINT will be 22 May. Dealing in the new JGGI shares will start on 29 May.
[I would expect this deal to progress smoothly, but I am wondering whether the experience of the past few weeks suggests that JGGI might be finally losing its crown as the go-to place for global equity income exposure. If you watched our interview with Murray International’s Samantha Fitzpatrick, or read my Questor article on that trust, I think there is a chance that an approach that is less closely aligned to global indices might fare better in the current market environment.]
JGGI / HINT : JPMorgan Global Growth and Income and Henderson International Income push ahead with merger
Having been a fairly long-term investor in HINT because of its ex-UK remit I was surprised back in February when the Hint board announced the merger with JGGI. There may have been some soundings from big investors, but for me, with a mere 56000 shares it seemed a fait accompli. Whilst JGGI has had a good performance, in some respects I have been wary of its over-reliance on its North America holdings, (75% at the time of the merger announcement and particularly the significant holdings in the big 7) and also its 4% dividend linked to NAV. With a drop in its present NAV valuation does that mean HINT shareholders will be seeing a loss of income when they are rolled over into JGGI?
My first response after the merger announcement was to sell 10,000 HINT shares at £1.80 and put the money into Murray International, (in which I also have a holding), where there is a prospect of a progressive dividend – your comment about JGGI losing its crown may prove to be uncomfortable for HINT shareholders.