Arbitrageurs looking at JP Morgan trusts

Widening discounts on two of JPMorgan's investment trusts, including the £1.4bn Mercantile, has led ...

Widening discounts on two of JPMorgan's investment trusts, including the £1.4bn Mercantile, has led to a fall in share price that has drawn the attention of arbitrageurs. The share price of JPMorgan Mercantile Investment Trust has dropped following the Britannic Smaller Companies Trust's rollover into the vehicle in May. Since then, the trust has made no moves to buy back shares in an effort to control the discount. At the time, Britannic shareholders were offered an entrance to the trust at an 8% discount. This has subsequently widened to 15%, as at 11 November 2005, according to Trust...