Scottish Investment Trust surrenders independence
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.