Publication of Prospectus

RNS Number : 1402C

JPMorgan Glb Emerging Mkts Inc Tst

01 March 2011

 



JPMorgan Global Emerging Markets Income Trust plc

The Company has today published a prospectus in connection with a placing and offer for subscription of C Shares.

Background

The Company was launched on 29 July 2010, issuing 104,000,000 Ordinary Shares. Since launch, the Ordinary Shares have consistently traded at a premium to the Net Asset Value per Share, indicating reasonable demand for them in the market. In response to this demand, the Company has issued a further 12.4 million Ordinary Shares in the period from launch to the date of this document and published a prospectus in November 2010 to support such issuance.

The Board believes that there is potentially further demand to invest in the Company. The Directors have authority, granted shortly prior to its launch on 29 July 2010, to undertake an issue of up to 200 million C Shares on a non-pre-emptive basis. The Issue will provide an opportunity for new investors to subscribe for equity in the Company as well as allowing existing investors to increase their investment by applying for C Shares.

Investment outlook

The Board, as advised by the Manager, believes the long-term growth prospects for emerging market companies continues to be strong, that emerging markets companies with higher dividend yields can offer also strong capital performance and that such an approach provides an opportunity for investors to diversify their sources of dividend income, particularly when compared with investing in the UK market for dividend income.

Benefits of the Issue

The Board believes that the Issue has the following principal benefits for Shareholders:

•	the Issue will enable Shareholders and other investors, to acquire Shares without incurring stamp duty and dealing costs;
•	following Conversion, the issued ordinary share capital will increase, which should help to meet investor demand for Ordinary Shares and improve the liquidity of the Ordinary Shares; and
•	an increase in the size of the Company will spread its fixed operating expenses over a larger issued share capital.

The net proceeds of the Issue will be accounted for and managed as a distinct pool of assets until the Conversion Date. Ordinary Shareholders will not therefore, as a result of the Issue, participate in a portfolio containing a substantial amount of uninvested cash before the Conversion Date.

The Directors have considered the potential impact of the Issue on the payment of dividends to Shareholders and will take steps to ensure that it will not result in any dilution of the dividends per Share that the Company intends to pay in its first financial year, ending on 31 July 2011.

Costs and expenses of the Issue and Initial NAV per C Share

The costs and expenses to be incurred by the Company in respect of the Issue are expected, based on gross proceeds of £50 million, to amount to approximately £810,000 (including VAT). Such costs and expenses comprise fixed and variable elements and the actual level will depend to a certain extent on the gross proceeds of the Issue.

The initial Net Asset Value per C Share will be fixed at 98.38 pence. This represents a reduction of some 1.62 per cent. to the Issue Price and is the same reduction to the Issue price as that experienced by shareholders who subscribed for Ordinary Shares in the Company's initial public offer in July 2010.

To the extent that the costs and expenses amount to less than an aggregate of 1.62 pence per C Share (being the difference between the Initial NAV per C Share and the Issue Price), the difference will be attributed to the Net Asset Value of the Company following the Conversion Date, such that all Shareholders benefit. Conversely, to the extent that the costs and expenses amount to more than an aggregate of 1.62 pence per C Share, the excess will be attributed to the Net Asset Value of the Company following the Conversion Date, such that all Shareholders bear such excess.

Expected timetable

Latest time and date for receipt of application forms under the Offer for Subscription and closing date for the Placing	3.00 p.m. on 13 April 2010
Results of the Issue announced	18 April 2011
Admission of C Shares	19 April 2011
Expected Calculation Date*	3 May 2011
Expected Admission of Ordinary Shares arising from Conversion*	13 May 2011

* Actual dates may vary in accordance with the C Share rights.

Capitalised terms in this announcement have the meanings attributed to them in the Prospectus.

Copies of the Prospectus has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do. The Prospectus will also shortly be available on the Company's website at www.jpmglobalemergingmarkets.co.uk.   

1 March 2011

Enquiries:

James Saunders Watson, JPMorgan Asset Management: 020 7742 8504

Darren Willis, Winterflood Investment Trusts (sales): 020 3100 0258

Robert Peel, Winterflood Investment Trusts (corporate broking): 020 3100 0291

 

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