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- M&G High Income rollover into JPMorgan Elect
As M&G High Income nears the maturity date of its zero dividend preference shares (in March 2017), its board has been considering its future. Today they have announced that they intend to put forward proposals for a reconstruction of the company. They’ll publish more detailed proposals early in 2017.
Conscious that some shareholders may favour maintaining their investment in a closed-ended structure, the board has agreed heads of terms with JPMorgan Elect’s board for it to act as the closed-ended rollover option in connection with the Proposals. JPMorgan Elect provides investors access to a number of different investment strategies, including one focused on UK equity income, through a multi-share class structure and the Board believe this will appeal to the company’s shareholders and unitholders.
JPMorgan Elect, which has total net assets of circa GBP290 million (as at 31 October 2016), has three share classes, and quarterly conversion between share classes is permitted. The investment objectives of the three classes, which the Board considers to be comparable to the Company’s overall investment objective, are set out below:
It is expected that each of JPMorgan Elect’s share classes will be made available as rollover options for the Company’s shareholders. Each share class is listed separately and traded on the main market of the
London Stock Exchange and JPMorgan Elect’s shareholders are able to switch between the three share classes on a quarterly basis without incurring a liability to UK capital gains tax.
M&G will make available as rollover options the following open-ended investment companies it manages:
Shareholders can also opt for a cash exit at NAV less costs
Pursuant to the Proposals, which will be subject to approval by the Company’s shareholders, the Company, through a scheme of reconstruction under section 110 of the Insolvency Act 1986, will be wound up voluntarily.
MGHC / MGHI / MGHU / MGHZ / MGHP / JPE / JPEI / JPEC : M&G High Income rollover into JPMorgan Elect
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