JPMorgan European Invest Tst PLC Company Update (5837P)
20 Octubre 2021 - 1:00AM
UK Regulatory
TIDMJETG TIDMJETI
RNS Number : 5837P
JPMorgan European Invest Tst PLC
20 October 2021
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JPMorgan European Investment Trust Plc
Company Update
Legal Entity Identifier: 549300D8SPJFHBDGXS57
20(th) October 2021
The Board of JPMorgan European Investment Trust Plc (the
"Company") stated in its annual report for the financial year ended
31 March 2021 that it was continuing to work with its investment
manager, JPMorgan Asset Management (UK) Limited (the "Investment
Manager"), to determine whether the Company provides a model which
will provide a sustainable attractive return for the longer
term.
The Board has now concluded a review of the Company and its
strategy, which included considering various options to improve
marketability and to broaden the appeal of the Company as well as
to improve liquidity and to narrow the discount at which the
Company's shares trade. The Board believes there remains a strong
case for investment in Europe, with the broad universe of European
equities providing quality diversification for UK investors.
However, the Board is of the view that the Company's existing dual
share class structure is unnecessarily complex and potentially
presents a hurdle to those looking to invest. The Board believes
that a single share class with a clearly defined investment process
would enable a cogent investment approach and increase the
Company's appeal.
The Board has therefore determined that it would be in the best
interests of shareholders to consolidate the Company's Income
Shares and Growth Shares into a single class of ordinary shares
(the "New Ordinary Shares") (the "Consolidation"). The investment
objective and investment policy of the New Ordinary Shares will be
the same as that of the Company's Growth Shares, reflecting the
Board's confidence in the Investment Manager's strength and depth
of team, as well as its track record, which has performed strongly
against the Company's benchmark and peers over the last 2 years
being a particularly challenging period for active managers.
Looking longer term, the Company has also outperformed its
benchmark over 5 and 10 years.
The Consolidation will create a company with net assets of
approximately GBP500m and should ensure the critical mass needed to
attract investors - it is also expected that the increased size
will have a beneficial impact on liquidity, which is expected to
have an additional positive impact on the discount of the New
Ordinary Shares. Conditional on the Consolidation, which requires
the approval of the Company's shareholders, the Board also intends
to introduce the following features which it believes will further
appeal to investors:
1. Introduction of an enhanced income strategy to target a
dividend of 4% p.a. (based on the net asset value of the New
Ordinary Shares as at the end of the preceding financial year) -
such strategy is differentiated to other European investment
companies and makes use of the closed-ended structure;
2. Adoption of an active discount management policy with a
commitment to keep any discount on the New Ordinary Shares to
single digit levels, in normal market conditions;
3. Introduction of a performance-related tender offer - if NAV
total return performance is behind the Company's benchmark (the
MSCI Europe ex UK Index (total return) in sterling terms) over a
five year period from Consolidation, a tender offer will be made
for up to 25% of the outstanding share capital at NAV less
costs;
4. Lower management fees - a reduced fee calculated on net
assets of 0.55% p.a. up to GBP400m, 0.4% p.a. thereafter;
5. Reduction of the notice period to 6 months (from 12 months at present); and
6. Change of the Company's name to JPMorgan European Growth
& Income plc, with the New Ordinary shares trading under a new
ticker, JEGI.
The Company has consulted with shareholders representing
material interests in both the Income Shares and the Growth Shares
and they have indicated their support for these proposals. The
Company expects to publish a circular and notice of meeting(s) in
connection with the Consolidation in due course and aims, subject
to approval of the Company's shareholders, to conclude the
Consolidation and to introduce the above features by late
2021/early 2022.
For further information please contact:
JPMorgan Funds Limited
Tim Mitchell - 0207 742 8879
Winterflood Securities Limited
Neil Morgan - 020 3100 0292
The person responsible for arranging for the release of this
announcement on behalf of the Company is Paul Winship of JPMorgan
Funds Limited.
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