Combination with Franklin Global Trust plc
Summary by AI BETAClose X
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, THE EUROPEAN ECONOMIC AREA, JAPAN, NEW ZEALAND OR THE REPUBLIC OF SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.
This announcement is not an offer to sell, or a solicitation of an offer to acquire, securities in the United States or in any other jurisdiction in which the same would be unlawful. Neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.
13 November 2025
Invesco Global Equity Income Trust plc
LEI: 549300JZQ39WJPD7U596
Combination with Franklin Global Trust plc (FRGT)
Introduction
The Board of Invesco Global Equity Income Trust plc (IGET or the Company) is pleased to announce that heads of terms have been agreed for a combination of the Company and FRGT (the Combination). This follows a thorough review by the board of FRGT and consultation with major FRGT shareholders.
FRGT shareholders will be entitled to elect to receive new IGET shares and/or cash.
IGET, as enlarged by the Combination (the Enlarged IGET), will continue with its distinct and multi-award-winning investment strategy under the management of Stephen Anness and Joe Dowling at Invesco Fund Managers Limited (Invesco).
Benefits for IGET Shareholders
- The Combination will result in a significant increase in IGET's size, with net assets of up to £445 million following the Combination, depending on cash elections.
- With greater scale, the Enlarged IGET is expected to appeal to a broader range of investors, which should result in higher trading volume and market liquidity in the Enlarged IGET's shares compared to either FRGT or IGET historically.
- An increase in the Company's size will also benefit shareholders by reducing its ongoing charges ratio through a reduction in the blended rate of the investment management fee payable to Invesco and spreading fixed costs over a larger asset base.
- Invesco has agreed to make a significant contribution towards the costs of the Combination equivalent to twelve months' management fee on the value of the assets to be transferred from FRGT to IGET. This is expected to cover or exceed IGET's costs incurred in putting forward and completing the Combination. FRGT will bear its own costs.
Background to the Combination
The Board of IGET has kept opportunities to grow the Company under regular review, recognising the benefits of increased scale. Since April 2025, the Company has successfully raised approximately £39 million by issuing shares to buyers in the market. The Combination allows the Company to increase significantly in size by bringing in an attractive and long-term base of new shareholders. The Board looks forward to welcoming these new shareholders to the register.
The Combination follows a thorough review by FRGT's Board of FRGT's investment management arrangements, with proposals sought from a number of parties. FRGT's Board believes that, among the options considered, the proposal put forward by IGET offers significant benefits and that the Combination represents the most compelling outcome for FRGT shareholders.
Investment strategy, management arrangements and dividend policy remain unchanged
The Company's investment strategy will not be affected by the Combination and the increase in its scale is not expected to compromise its ability to continue to deliver strong performance over the long-term.
For periods to 31 October 2025:
- IGET has outperformed all Global Equity Income peers over three and five years and all Global Equity peers over five years, in both NAV and share price total returns.
- IGET has delivered NAV total returns of 74.5% and 140.3% over three and five respectively, outperforming the Company's benchmark (the MSCI World Index) total returns of 57.9%, and 103.0% over the corresponding periods.
- IGET has delivered share price total returns of 103.1% and 152.0% over three and five years respectively.
Past performance is not a guide to the future. Global Equity Income peers are those investment companies in the AIC's Global Equity Income sector and Global Equity peers are those investment companies in the AIC's Global Equity sector.
The Company will continue to be managed by Invesco, a subsidiary of Invesco Limited a global asset manager with US$2.1 trillion of AUM, including US$32.2 billion managed by the Invesco Global Equities team (as at 30 September 2025).
IGET will continue to benefit from the expertise of its award-winning Portfolio Managers, Stephen Anness and Joe Dowling, and from the depth of resource and experience offered by the wider Global Equities team.
Similarly, the Company's dividend policy, which pays an annual dividend of at least 4% of the unaudited previous year-end NAV, paid quarterly in equal amounts, will not change as a result of the Combination.
As announced in the annual report, the Board will continue, in normal market conditions, to actively use its authority to issue or buy-back shares to manage the volatility of the premium or discount. The Enlarged IGET will use its buyback authorities with the objective of maintaining a discount no wider than mid-single digits on a sustained basis.
Governance
Following completion of the Combination, it is expected that Christopher Metcalfe, Chair of FRGT, will join the Board of IGET.
Expected Timetable
It is intended that the documentation in connection with the Scheme will be posted to each of IGET's and FRGT's shareholders in January 2026 after the changes to the Prospectus Rules become effective. This means that IGET will not be required to incur the cost of producing a prospectus. General meetings of both companies will be held in February 2026, and the Combination is expected to be effective shortly thereafter.
Conditions
The Combination will be subject to the approval of both IGET shareholders and FRGT shareholders, necessary regulatory and tax approvals and other conditions.
Full details, terms and condition of the Combination will be set out in a circular to shareholders expected to be despatched in late January 2026. The Combination will be implemented through a scheme of reconstruction of FRGT under section 110 of the Insolvency Act 1986.
Sue Inglis, Chair of IGET, said
"We are delighted that, after a comprehensive review, the Board of FRGT has concluded that a combination with IGET offers the best outcome for their shareholders. This is a further strong endorsement of the Company, which last week won the `Best International Income Trust' category at the annual Citywire Investment Trust Awards for the third consecutive year.
We believe that the proposed combination will provide benefits for shareholders of both companies, creating a substantially larger, more liquid company with an outstanding track record, a predictable and attractive level of dividend income and competitive running costs. Added to that, we are confident that our portfolio managers' proven distinctive and disciplined investment approach will continue to stand the Company in good stead through different market conditions."
Enquiries:
| Invesco Global Equity Income Trust plc Sue Inglis, Chair | Via Invesco Asset Management Limited |
| Invesco Fund Managers Limited (Manager, IGET) Will Ellis/John Armstrong-Denby | 020 7543 3500 |
| Invesco Asset Management Limited (Company Secretary, IGET) James Poole | 020 7543 3559 |
| Cavendish (Financial Adviser and Corporate Broker to IGET) Robert Peel, Corporate Finance Justin Zawoda-Martin, Sales | 020 7220 0572 |
The information in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. The material contained in this announcement is given as at the date of its publication (unless otherwise marked) and is subject to updating, revision and amendment. In particular, any proposals referred to herein are subject to revision and amendment.
The new shares in IGET to be issued pursuant to the Combination (New IGET Shares) have not been, and will not be, registered under the U.S. Securities Act of 1933 (as amended) (the Securities Act) or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an exemption from registration under the Securities Act. Moreover, the New IGET Shares have not been, nor will they be, registered under the applicable securities laws the United States, Australia, Canada, Japan, New Zealand or the Republic Of South Africa or any member state of the EEA (other than any member state of the EEA where the shares are lawfully marketed). Further, IGET is not, and will not be, registered under the US Investment Company Act of 1940, as amended.
The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Figures refer to past performance and past performance should not be considered a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations.
This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "might", "will" or "should" or, in each case, their negative or other variations or similar expressions. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding FRGT's or IGET's respective financial positions, strategies, plans, proposed acquisitions and objectives, are forward-looking statements.
Forward-looking statements are subject to risks and uncertainties and, accordingly, FRGT's or IGET's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These forward-looking statements speak only as at the date of this announcement and cannot be relied upon as a guide to future performance. Subject to its legal and regulatory obligations, IGET expressly disclaims any obligations or undertaking to update or revise any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based unless required to do so by law or any appropriate regulatory authority.
Cavendish Capital Markets Limited (Cavendish) which is authorised in the United Kingdom by Financial Conduct Authority is acting exclusively for IGET and for no-one else in connection with the Combination, will not regard any other person as it client in relation to the Combination and will not be responsible to anyone other than IGET for providing the protections afforded to its clients or for providing advice in relation to the Combination, or any of the other matters referred to in this announcement. This does not exclude any responsibilities or liabilities of Cavendish under the Financial Services and Markets Act 2000, as amended, or the regulatory regime established thereunder.
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