According to the group, the merger has been approved by the majority of both sets of shareholders and will seek court approval this week. If approved, the merger is expected to take place on May 5.The merged trust will retain the Capital and Income name, while the integration will result in the cancellation of the ordinary share capital of the Income Growth trust. Shareholders in the trust will be issued new shares in the merged offering. The Capital and Income trust will also pay dividends quarterly after the merger. The larger trust will be managed by Julian Cane (pictured), who has managed both trusts since 1997. The trusts have similar portfolio structures and have the same top holdings, including BP, GlaxoSmithKline and Shell. However, while both investment trusts invest primarily in FTSE 350 companies, the Capital and Income trust is also able to invest in European companies. Pen Kent, a member of the Capital and Income trust board, will take over as chairman of the board after the trusts merge. The current chairman of the Capital and Income trust, Graham Ross Russell, plans to retire after the merger. Peter Hardy, senior independent director of the trust, is also planning to retire. F&C also further rationalised its mutual funds range last week, with the merger of seven former F&C funds into similar former Isis offerings. The group now has a range of 47 funds, including 38 retail funds and nine funds that are still only available to institutional investors. As a result, the F&C With Prospects fund is now part of Tony Broccardo’s Managed Distribution fund. The F&C UK Smaller Companies fund was also merged into an existing fund with the same name, managed by Catherine Stanley. Five other institutional Oeics were merged into existing funds as a result of the consolidation.