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 Ordinary shares at specified future dates at pre-determined prices.
The JPMorgan Japan Smaller Companies Trust plc issued Subscription shares on 5 March 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 as at the close of business on 27 February 2009 and based on the Company’s Net Asset Value of 133.53 pence, have been determined as follows:
Subscription Share Rights are exercised between and including:
1 April 2010 and 31 March 2012, 147 pence per share
1 April 2012 and 31 March 2014, 174 pence per share
How to convert
Through the J.P. Morgan ISA Investment Account or SIPP
J.P. Morgan investors wishing to convert their JPMorgan Japan Smaller Companies Trust plc 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
WealthManager+ conversion form for ISA, Investment Account or SIPP
Classic Account conversion form for Investment Account holders
Classic Account conversion form for ISA holders
Certificated form
Shareholders wishing to convert their JPMorgan Japan Smaller Companies Trust plc Subscription shares, who hold their Shares in Certificated form, should refer to the instructions on the reverse of their Subscription Share Certificate(s). Certificates must be received on the last business day of each month in which the conversions are applicable.
Through CREST (Uncertified Shareholders)
If you hold your JPMorgan Japan Smaller Companies Trust plc Subscription shares in uncertificated form (i.e. in CREST), the CREST Participant and Member Account IDs are outlined below:
CREST Participant ID = 6RA92
CREST Member Account ID = RA209317
The USE (Unmatched Stock Event) instruction should be input by 1.00 pm and received by 3.00 pm on the last business day of each month, in order to receive the new Ordinary shares by the tenth business day of the following month. Any instructions received after this time (i.e. in the current month) will not be credited with the Ordinary share entitlement until the tenth business day of the subsequent month.
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 March 2009 the middle market prices of the Company's Ordinary shares and Subscription shares were as follows:
Ordinary Shares 101.75p
Subscription Shares 7p
If you need tax advice, you should contact a qualified tax professional.
Further Information
Subscription Shares price calculation
Today's and projected conversion prices for all our Trust's Subscription Shares
View Subscription Shares calculator