JP Morgan Asian in massive share buy-back

JP Morgan Asian Investment Trust is to offer to buy back a quarter of its shares in issue.

JP Morgan Asian Investment Trust is to offer to buy back a quarter of its shares in issue.

Subject to shareholder approval the investment trust will, through Cenkos Securities, offer to buy shares from those shareholders who wish to sell.

The tender price will be the fully diluted cum (i.e. with) income net asset value per ordinary share (inclusive of undistributed revenue reserves) on the calculation date, which is likely to be November 26th, less the direct costs and expenses of the tender offer (including stamp duty and portfolio realisation costs).

JP Morgan Asian Investment Trust does not want to buy back more than 24.99% of the shares in issue and so therefore shareholders who take advantage of the tender offer will be guaranteed the opportunity to offload just under a quarter of their holdings. However, because not all shareholders will tender shares, there will almost certainly be the opportunity for shareholders to sell more than 24.99% of their existing holdings.

The deadline for applications to participate in the tender offer is expected to be November 20th.

The board of the company said it has also decided to reappoint the existing investment manager for the company, JP Morgan Asset Management (JPMAM).

JPMAM charges a fee based on the market valuation of JP Morgan Asian Investment Trust; it has agreed to reduce this fee from 0.75% to 0.60% per annum. Also, in order to defray a part of the costs that were incurred in the portfolio management transition earlier in the year, and cover other administration expenses, JPMAM has agreed to make an additional one-off contribution to the company's expenses in the amount of 0.35% of the value of the trust's total assets less current liabilities on October 1st, (being an amount equal to over £1.135m).

The notice period for termination of the investment management agreement on the grounds of poor investment performance has been reduced from six months to three months, while the notice period for termination without cause has been halved to six months.

JH

Recommended

Share tips of the week – 19 August
Share tips

Share tips of the week – 19 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
19 Aug 2022
How to invest in smart factories as the “fourth industrial revolution” arrives
Share tips

How to invest in smart factories as the “fourth industrial revolution” arrives

Exciting new technologies and trends are coming together to change the face of manufacturing. Matthew Partridge looks at the companies that will drive…
18 Aug 2022
How to invest today? Look to the past, not the future
Investment strategy

How to invest today? Look to the past, not the future

The past few years have seen so many changes to our way of life that many people said we had entered a “new normal”. But as it turns out, the new norm…
18 Aug 2022
A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022

Most Popular

How to protect your wealth as inflation hits new record highs
Investment strategy

How to protect your wealth as inflation hits new record highs

UK inflation has hit a new record high of 10.1%. It's going to hurt, says Dominic Frisby. Here's how you can protect your wealth.
17 Aug 2022
How to cut your energy bill
Personal finance

How to cut your energy bill

The energy-price cap will almost double in the autumn. What does this mean for your money, and how can you alleviate the squeeze? Ruth Jackson-Kirby h…
17 Aug 2022
Are GSK’s legal troubles a threat to the firm’s survival?
Biotech stocks

Are GSK’s legal troubles a threat to the firm’s survival?

Pharmaceutical giant GlaxoSmithKline is facing legal action over heartburn drug Zantac that has seen billions wiped off its market value. Rupert Hargr…
16 Aug 2022