JP Morgan Global Growth & Income trust set to acquire Janus Henderson's smaller fund

JP Morgan's Global Growth & Income trust, a leading investment trust, is poised to acquire its smaller rival managed by Janus Henderson.

The £3.1 billion JP Morgan trust has initiated a takeover bid for the £329 million Henderson International Income trust, as revealed in a stock exchange announcement today, as reported by City AM.

Following the announcement, shares of Henderson International Income surged by 9.6 per cent in early trading. Both trusts have acknowledged a significant overlap in their top shareholders, with 85 per cent of Henderson's investors also holding shares in JP Morgan Global Growth & Income.

Should the acquisition proceed, charges for Henderson's investors would decrease from 0.77 per cent to 0.42 per cent. The new board of the trust would include six directors from JP Morgan's trust and one from the Henderson trust, with the latter director resigning after a year.

"The board believes that the proposed combination will provide shareholders with access to a larger, more liquid vehicle with an outstanding track record and a history of growing dividends whilst focusing on the most attractive investment opportunities," stated Richard Hills, chair of Henderson International Income trust.

He added, "Having consulted a number of our largest shareholders who have indicated their support, we believe the combination is very attractive for shareholders as a whole."

JP Morgan Global Growth & Income's largest holdings include Amazon, accounting for 6.8 per cent of assets, Microsoft at 6.7 per cent, and Nvidia at 5.6 per cent.

According to data from Deutsche Numis, JP Morgan Global Growth & Income was the second most popular trust across all investment platforms in 2024, falling behind only Scottish Mortgage.

The popularity among retail investors has been partially due to the strong performance of the JP Morgan trust, with its underlying assets growing by 49.2 per cent over the last three years compared to Henderson’s 17.8 per cent.

This is in comparison to a 31.9 per cent return across all global equity income trusts, as per data from the Association of Investment Companies.