Following the announcement on 3rd September 2024 that the JPMorgan Global Core Real Assets (JARA) continuation vote had not been passed by shareholders, the board and its advisers have been consulting with the company’s largest shareholders on the options open to the company. Having completed that consultation process, the board has now concluded that it is in the best interests of shareholders as a whole to put forward proposals for a managed wind-down of the company.
Implementation of the managed wind-down will require shareholder approval to amend the company’s investment objective and policy. Full details of the proposals, including further information on the expected timeline for the sale of the company’s assets, will be published in a circular to shareholders as soon as practicable. Following receipt of the required approvals, the company will conduct an orderly realisation of its assets, and the investment manager will effect redemption requests to the relevant underlying private funds.
Based on the current estimates by the investment manager, it is envisaged that approximately 50 – 60 per cent. of the company’s portfolio could be liquidated by the end of Q2 2025, with the remaining redemptions expected to be satisfied over the following twelve months. The redemption requests will be satisfied on a best-efforts basis and there is no guarantee that this estimated timeline will be achieved, as it is contingent on the liquidity provided by the underlying private funds in satisfying redemption requests, which may be in a queue and, by extension, on market conditions. The proceeds to be received by the company will be determined by the net asset value of the underlying vehicles prevailing at the time that each redemption is settled.
In addition to the assets held within the private funds, the company also has approximately 15 per cent. invested in listed real assets and other liquid securities that are easily realisable. Subject again to shareholder approval for the managed wind-down, JARA intends to sell these listed assets and return capital to shareholders.
JARA : JPMorgan Global Core Real Assets to wind down