City Merchants High Yield and Invesco Enhanced Income boards propose merger

Combined 'BIPS' to benefit from economies of scale

The boards of the Invesco-managed City Merchants High Yield (CMHY) trust and Invesco Enhanced Income (IPE) trust have proposed a merger of the investment companies in efforts to deliver greater economies of scale from an enlarged asset base.

Subject to shareholder approval, the combined entity - Invesco Bond Income Plus (BIPS) - will involve a contractual scheme of reconstruction by IPE and a transfer of assets to CMHY. Investec: 'Buy' Keystone IT on positive Baillie Gifford change Based on the existing net assets of CMHY and IPE, it is estimated that BIPS would have net assets in excess of £300m. Under the proposals, the current fund manager of both CMHY and IPE, Rhys Davies, will continue as the fund manager of BIPS. The board of CMHY said the two listed vehicles "are managed by the same fund management company an...