Franklin Global Trust Shareholders Approve Merger with Invesco Fund

Franklin Global Trust shareholders voted 96.3% to merge with Invesco Global Equity Income Trust, ending the fund due to underperformance. Investors get shares or cash.

Shareholders of the Franklin Global Trust have voted decisively to wind down the fund and merge its assets with the Invesco Global Equity Income Trust (IGET). This move concludes the trust's independent existence, with management citing persistent underperformance and operational challenges as the primary catalysts for the consolidation.

A Clear Mandate for Consolidation

The final shareholder meeting yielded an overwhelming result. A commanding 96.3% of the votes cast were in favor of the share-for-share transfer. Investors supporting the merger will receive 0.916696 new IGET shares for each Franklin Global Trust share they currently hold.

A minority of 3.7% of shareholders opted for the cash exit alternative. These investors will be paid a cash consideration of approximately 342.87 pence per share. The combined entity aims to create a larger, more liquid fund, which is expected to benefit from greater economies of scale and enhanced appeal in the capital markets.

Underperformance Triggers Strategic Shift

The trust's board concluded that a merger presented the most sensible path forward, having determined no viable alternative remained. The decision was driven by a history of weak returns and the fund's diminishing size, which increasingly hampered its operational efficiency.

This marks the end of a turnaround effort that began last year. Previous attempts to revitalize the fund included a rebranding and a closer alignment with the Franklin Equity Group. When these measures failed to produce a sustained recovery, a merger with IGET was identified as the optimal solution for shareholders. The Invesco fund was selected based on its more stable performance history and a suitable dividend strategy for the enlarged portfolio.

Trading in Franklin Global Trust (FRGT) shares was suspended on the London Stock Exchange as of last Thursday. Former FRGT shareholders who elected the share exchange can expect to begin trading their new Invesco Global Equity Income Trust holdings from tomorrow, Monday, 2 March 2026.