The current market capitalisation of the Company is below £60 million, which the Directors believe to be lower than is desirable for an investment trust of this kind. JEFIT was launched in May 2017 and, although the subsequent investment performance of the Company has been respectable in the context of the emerging and frontier markets into which it invests, the Redemption Facility offered by the Company has resulted in a significant shrinkage of its capital base since the onset of the Covid-19 pandemic. In view of the consequent small size of the Company and the risk of further shrinkage through future redemptions, the Directors believe that, for JEFIT to be viable, it would be necessary to grow the Company through a combination of capital appreciation and the issuance of new shares. Given current market conditions, in particular the effect on markets of Russia’s invasion of Ukraine, the Directors believe that for the foreseeable future there are limited opportunities for the growth of the Company. Accordingly, the Board is proposing that the Company be wound up, such that Shareholders are provided with a full cash exit less costs. Whilst the possibility of a rollover option was considered and a number of proposals for rollover vehicle candidates were reviewed, the Board has concluded that it is not in the interests of Shareholders to offer a rollover option.
The proposed winding up of the Company requires the approval of Shareholders at a General Meeting that is being convened pursuant to the Circular.