Eve Maddock-Jones, Investment Week, 31 July 2024:
JP Morgan has decided to merge two of its Japanese equity-focused investment trusts into one all-cap portfolio.
The respective boards of the Japan Small Cap Growth & Income (JSGI) and Japanese (JFJ) trusts have agreed to a merger, whereby the former’s assets will roll into the latter.
Under the terms of the scheme, JSGI shareholders will be entitled to realise up to 25% of their investment in the company for cash.
JFJ is already the biggest company in the Association of Investment Companies’ Japan sector, with £957.7m in total assets.
The combined portfolios will create an approximately £1bn JFJ portfolio, dependent on the uptake of the cash exit opportunity.
According to JP Morgan, the enlarged mandate should include increased secondary market liquidity, a larger marketing presence, and greater relevance to larger investors as a direct consequence of size.
QuotedData analyst Andrew Courtney said the merger made “clear sense”, given the similarities in investment mandates and the diminishing scale of JSGI.
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