JPMorgan Asian Investment Trust plc:
Subscription Shares
Some investment trusts issue Subscription Shares. On issue, they are available to investors in the Company at that time, and offer them the right to purchase Shares at specified future dates at pre-determined prices.
The J.P. Morgan Asian Investment Trust plc issued Subscription Shares on 4 February 2009 as a bonus issue to Ordinary shareholders on the basis of one Subscription share for every five Ordinary Shares held. Each Subscription share confers the right (but not the obligation) to subscribe for one Ordinary share on any business day during the period from 1 April 2009 until 31 March 2014, after which the rights on the Subscription Shares will lapse.
Future exercise prices, calculated at the close of business on 2 February 2009 and based on the Company’s net asset value per share of 135.04 pence, plus a percentage premium to such amount, rounded up to the nearest whole penny, have been determined as follows:
Subscription Share Rights are exercised between and including:
1 April 2010 and 31 March 2012, 176 pence
1 April 2012 and 31 March 2014, 203 pence
How to convert
Through the J.P. Morgan ISA, Investment Account or SIPP
J.P. Morgan investors wishing to convert their J.P. Morgan Asian Subscription Shares should complete and return the relevant conversion form with a cheque to the freepost address at the top of the form. Forms must be received at least seven business days before the calendar month in which the conversions are applicable.
Conversion forms
Investment Account Subscription Share Conversion form 2012
ISA Subscription Share Conversion Form 2012
SIPP Subscription Share Conversion Form 2012
Certificated form
Shareholders wishing to convert their JPMorgan Asian Investment Trust Subscription Shares, who hold their Shares in Certificated form, should refer to the instructions on the reverse of their Subscription Share Certificate(s).
Your Subscription Share certificate and cheque must be received by Equiniti Limited by 5:00pm on 30 March 2012 in order to benefit from the conversion price of 176 pence.
Through CREST (Uncertified Shareholders)
If you hold your J.P. Morgan Asian Investment Trust Subscription Shares in uncertificated form (i.e. in CREST), the new CREST Participant and Member Account IDs are outlined below:
CREST Participant ID = 6RA97
CREST Member Account ID = RA135723
The USE (Unmatched Stock Event) instruction should be submitted by 11:00am and received by 1:00pm on 30 March 2012 in order to benefit from the conversion price of 176 pence. Instructions received after this date will be subject to the increased conversion price of 203 pence per share. The scheduled CREST credit date for any subscription requests received in March will be 3 April 2012.
Tax
For the purpose of UK Taxation, the issue of Subscription Shares is treated as a reorganisation of the company’s share capital. Whereas such reorganisations do not trigger a chargeable disposal for the purposes of the taxation of capital gains, they do require shareholders to reallocate the base costs of their Ordinary Shares and Subscriptions Shares received.
Tax example:
At the close of business on 5 February 2009 the middle market prices of the Company’s Shares were as follows:
Ordinary Shares: 127.5 pence
Subscription Shares: 21.25 pence
If an individual investor held five Ordinary Shares (or a multiple thereof) at that time they would have received a bonus issue of one Subscription share ( or relevant multiple thereof) and would apportion the base cost of such holding 96.77% to the five Ordinary Shares and 3.23% to the Subscription Shares.
Further information
Subscription Shares price calculation
Today's and projected conversion prices for all our Trust's Subscription Shares
View Subscription Shares calculator