Merger unveiled

Scottish Investment Trust surrenders independence

James Will

James Will: ‘compelling outcome’

Scottish Investment Trust, which traces its roots to the late nineteenth century, is merging with JPMorgan Global Growth & Income (JGGI) to create a £1.2 billion listed fund.

Following a four-month strategic review with Stanhope Consulting, SIT chairman James Will said combining the £671 million trust with its £700m rival offered the “most compelling outcome” for shareholders. It was preferable to a tie-up with an external investment group.

Merging with JGGI would lower charges, give investors access to its more successful, style-agnostic approach and attractive 4% dividend policy, while benefiting from being part of JP Morgan Asset Management, the largest investment trust provider by several funds, he said.

However, the liquidation of SIT via a scheme of reconstruction, will mean fund manager Alasdair McKinnon and its Edinburgh staff will lose their jobs.

The Edinburgh office and its savings scheme of the 134-year-old self-managed investment company will be retained by the liquidator to ensure the company’s pension scheme is sufficiently funded.

One Comment to Scottish Investment Trust surrenders independence

  1. So the staff lose their jobs but the Directors, who drove the investment policy, appointed the staff, and monitored their performance, get rewarded for failure by joining the board of JGGI. Sounds absolutely outrageous.

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