Global investment group JPMorgan has launched an income and growth investment trust holding approximately GBP130 million in gross assets, following a successful fund raising and reconstruction of its predecessor company, JPMF Income & Growth Investment Trust.
The new investment trust will be managed by JPMorgan Asset Management (JPMAM), a provider of investment trusts.
Shareholders in JPMF Income and Growth were able to make an election, which resulted in JPMorgan Income and Growth Investment Trust (JIGIT) holding net assets of nearly GBP100 million.
JIGIT will be a new closed-ended investment company incorporated in England and shares in the new company began trading on December 20, 2006. It will have a fixed life of 10 years, scheduled to end on November 30, 2016. Its board of directors will remain unchanged.
There are two classes of shares on offer; capital share and income shares, which can be held together to form a single unit. JIGIT is expected to offer shareholders an initial net dividend yield of 6% on income shares and 4.1% on the units in the company for the first fiscal year.
We are very pleased with the positive response from existing investors and welcome a number of new investors to the new company. Based on the current value of the assets, we anticipate that the new company will have gross assets of approximately GBP130 million. This successful rollover shows that the split capital industry remains relevant to investors seeking a well structured and well managed company, said chairman Alan Cole.