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 Chinese Investment Trust plc issued Subscription Shares on 16 April 2008 as a bonus issue to Ordinary shareholders on the basis of one Subscription share for every five Ordinary Shares held. Following a Class Meeting of Subscription shareholders and a General Meeting of Ordinary shareholders on 28 June 2010, at which shareholders approved a variation of Subscription Share Rights, each Subscription share confers the right (but not the obligation) to subscribe for one Ordinary share at 168 pence per share on any business day until 15 May 2013, after which the rights on the Subscription shares will lapse.
How to convert
Through the J.P. Morgan ISA Investment Account or SIPP
J.P. Morgan investors wishing to convert their JPMorgan Chinese Investment 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 Chinese Investment 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 by Equiniti Limited on the last business day of each month in which the conversions are applicable.
Through CREST (Uncertified Shareholders)
If you hold your JPMorgan Chinese Investment Trust plc Subscription Shares in uncertificated form (i.e. in CREST), the CREST Participant and Member Account IDs are outlined below:
CREST Participant ID = 6RA40
CREST Member Account ID = RA107833
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 16 April 2008 the middle market prices of the Company’s Shares were as follows:
Ordinary Shares: 116.00 pence
Subscription Shares: 22.00 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 96.35% to the five Ordinary shares and 3.65% to the Subscription shares.
Further information
Subscription Shares Prospectus
Shareholder Circular - 28 May 2010
Subscription Shares price calculation
Today's and projected conversion prices for all our Trust's Subscription Shares
View Subscription Shares calculator