18th Sep 2026 10:47
(Alliance News) - JPMorgan UK Small Cap Growth & Income PLC and Aberdeen UK Smaller Cos Growth Trust PLC plan to merge, the two London-listed investment trusts announced on Friday.
The companies agreed terms for a proposed combination, which would see Aberdeen UK Smaller Cos wound up and shareholders given the option to roll over their holdings into an enlarged JPMorgan UK Small Cap or to take cash.
The cash option is capped at 35% of Aberdeen UK Smaller Cos's issued share capital and would be priced at residual net asset value less a 2% discount.
The enlarged trust would continue to be managed by JPMorgan Funds Ltd, with management fees reduced to 0.60% on net assets up to GBP200 million and 0.55% above that level.
The combination is expected to complete by the end of 2026 or shortly thereafter, subject to shareholder approvals, tax clearances and JPMorgan UK Small Cap passing its November continuation vote. Manju Malhotra and Steve Russell, directors of Aberdeen UK Smaller Cos, are expected to join the enlarged trust's board.
Katrina Hart, chair of JPMorgan UK Small Cap, said: "This partnership will create an enlarged company that delivers meaningful benefits for both sets of shareholders, including improved market liquidity and a reduction in our ongoing costs ratio.
"JUGI makes good use of the investment trust structure through gearing and its enhanced dividend, while the long-term performance record of its experienced management team is compelling. This is JUGI's second consolidation in the last three years and the board's ambition is that JUGI is recognised as the pre-eminent investment trust investing in UK smaller companies."
Liz Airey, chair of Aberdeen UK Smaller Cos, added: "I am delighted that we can offer our shareholders the opportunity to rollover their holdings into an investment trust with exceptional long-term performance within the UK smaller companies sector. Those who elect to do this will also benefit from holding shares in a larger, and so more cost efficient, company which should offer better trading liquidity."
JPMorgan UK Small Cap shares were 1.1% lower at 336.25 pence each on Friday morning in London, giving the trust a market capitalisation of GBP405.9 million, while Aberdeen UK Smaller Cos shares were up 3.6% to 523.00p for a market cap of GBP225.0 million.
By Tom Budszus, Alliance News slot editor
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Aberdeen Uk Sm.Jpm Uk Sml Cap