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.
JPMorgan Emerging Markets Investment Trust plc issued Subscription Shares on 11 June 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 between 1 August 2009 and 31 July 2014, after which the rights on the Subscription Shares will lapse.
Future exercise prices, calculated at the close of business on 9 June 2009 and based on the Company’s Net Asset Value of 417.3 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 August 2009 and 31 July 2010, 422 pence
1 August 2010 and 31 July 2012, 460 pence
1 August 2012 and 31 July 2014, 543 pence
How to convert
Through the J.P. Morgan ISA Investment Account or SIPP
J.P. Morgan investors wishing to convert their JPMorgan Emerging Markets 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
WealthManager+ application form for a Stocks and Shares ISA for the tax year 2011/12
Classic Account conversion form for Investment Account holders
Classic Account conversion form for ISA holders
Classic Account application form for a Stocks and Shares ISA for the tax year 2011/12
Certificated form
Shareholders wishing to convert their JPMorgan Emerging Markets 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).
Your Subscription Share certificate and cheque must be received by Equiniti Limited by 5:00pm on 30 July 2010 in order to benefit from the conversion price of 422 pence per share.
Through CREST (Uncertified Shareholders)
If you hold your JPMorgan Emerging Markets Investment Trust plc Subscription Shares in uncertificated form (i.e. in CREST), the CREST Participant and Member Account IDs are as follows:
CREST Participant ID = 6RA86
CREST Member Account ID = RA108111
The USE (Unmatched Stock Event) instruction should be input by 11.00 am and received by 1.00 pm on Friday 30 July 2010 in order to benefit form the conversion price of 422 pence per share. Instructions received after this date will be subject to the increased converison price of 460 pence per share. The scheduled CREST credit date for any subscription requests received in July will be 1 August 2010.
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 11 June 2009 the middle market prices of the Company’s Shares were as follows:
Ordinary Shares: 392.00 pence Subscription Shares: 57.00 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 97.17% to the five Ordinary Shares and 2.83% 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