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Invesco and Franklin Templeton investment trusts agree merger

By Graeme Coles-Andrew
14th November 2025

Related topics: Invesco, Franklin Templeton, Investment trusts for Income, AIC: UK equity income

Invesco and Franklin Templeton investment trusts agree merger

Two of the UK’s leading global equity income investment trusts are set to merge in early 2026, in a move aimed at creating a larger and more liquid vehicle for income-focused investors.

The Boards of Invesco Global Equity Income Trust [LON:IGET] and Franklin Global Trust [LON:FRGT] said on Thursday that they had agreed heads of terms to combine the two London-listed investment trusts, creating a company with net assets of up to £445mn.

The combined entity will retain the Invesco Global Equity Income Trust name and continue to be managed by Stephen Anness and Joe Dowling, part of Invesco’s £32.2bn Global Equities team.

The proposed merger will significantly increase the scale of the Invesco trust, broadening its investor appeal and potentially improving trading liquidity. It follows a series of similar consolidations in the investment trust sector this year as boards seek to counter persistent discounts to net asset value and rising cost pressures.

How will the trusts’ shareholders benefit?

IGET shareholders are expected to benefit from lower ongoing charges, with investment management fees reduced through a blended structure and fixed costs spread across a larger asset base. FRGT investors, meanwhile, are likely to see an immediate uplift in value, as IGET currently trades at a premium to NAV, compared with FRGT’s discount.

The enlarged trust will continue to target a dividend of at least 4% of the previous year’s NAV, paid quarterly in equal instalments, a policy the Invesco board has said underpins the trust’s appeal to income-seeking investors.

IGET has been one of the sector’s most consistent performers, outperforming both its Global Equity Income peer group and the broader AIC Global Equity sector over three- and five-year periods. Over the past five years, the trust’s dividend has grown at an average rate of 12.2% per annum, well ahead of its peers. The trust recently won Citywire’s Best International Income Trust award for the third consecutive year.

Sue Inglis, chair of IGET, said the proposed combination was a “strong endorsement” of the trust’s track record and investment approach.

“The merger will create a substantially larger, more liquid company with an outstanding performance history, predictable and attractive income, and competitive running costs,” Inglis said. “We are confident that our disciplined investment strategy will continue to deliver for shareholders across market cycles.”

Christopher Metcalfe, chair of FRGT, said his board had undertaken a “thorough review” of strategic options and concluded that merging with IGET was in the best interests of shareholders. “IGET’s proposal offers enhanced scale, improved liquidity, and a strong record of performance,” he said. “We intend to roll our holdings into the enlarged vehicle and look forward to the future with confidence.”

The portfolio will remain focused on high-quality global equities that combine reliable dividends with long-term growth potential, reflecting Invesco’s long-standing emphasis on stock selection and valuation discipline.

Stephen Anness, head of global equities at Invesco, said:

“This comes at an exciting time for global equities. Despite market volatility, opportunities for active investors are abundant. Our strategy is designed to deliver income and capital appreciation through changing market conditions, and we look forward to bringing that to an even wider shareholder base.”

Will Ellis, head of specialist funds at Invesco, described the merger as “a strong vote of confidence” in the firm’s investment trust franchise. It follows the completion of the Invesco Asia Dragon merger earlier this year and builds on the group’s efforts to streamline and scale its listed fund range.

Documentation for the transaction will be sent to shareholders in January 2026, with completion expected in February 2026, making IGET one of the first companies to operate under the UK’s new simplified Prospectus Rules.