Industry reaction: £1.2bn blockbuster IT merger to benefit investors

'Greater economies of scale'

Investors should benefit from "greater economies of scale" as well as lower fees and improved liquidity after the blockbuster merger of the £581m Murray Income Trust (MUT) and the £642m Perpetual Income and Growth trust, analysts have predicted.

The two investment companies announced the tie up, subject to shareholder approval, on Wednesday (29 July), creating a £1.2bn mandate, the third largest in the Association of Investment Companies' UK Equity Income sector. PLI will merge into MUT and will be run by Aberdeen Standard Investments' Charles Luke. The PLI board had previously said it was open to a merger, though chairman Richard Laing told Investment Week the "overall objective was to find the best manager" for the trust. Consolidation expected as heavyweight UK equity income trusts look for new homes "A merger adds furt...