Conditional Tender Offer Introduction
Updated : 18:17
JPMORGAN INDIAN INVESTMENT TRUST PLC
INTRODUCTION OF PERFORMANCE-RELATED CONDITIONAL TENDER OFFER
26 January 2021
Legal Entity Identifier: 549300OHW8R1C2WBYK02
This announcement contains inside information as defined under the Market Abuse Regulation (EU) No. 596/2014
The Board of JPMorgan Indian Investment Trust plc (the "Company") announces that, following consultation with the Company's advisers, it intends to introduce a performance-related conditional tender offer. Under the proposal, a tender offer will be made to shareholders for up to 25% of the Company's outstanding share capital, at net asset value ("NAV") less costs if, over the next five years (from the start of the current financial year being 1 October 2020), the Company's NAV total return in sterling on a cum income basis does not exceed the total return of the MSCI India Index in sterling terms (the "Benchmark") plus 0.5% per annum over the five year period on a cumulative basis. If the tender offer is triggered, it will be subject to shareholder approval at the relevant time.
Any tender offer will also be conditional on shareholders approving the Company's continuation vote in 2024.
The Board is pleased to note that since the start of the current financial year, the NAV total return of the Company to 31 December 2020 has exceeded the Benchmark by 2.1%. The Board is encouraged by this improvement in relative performance following the change to the Company's investment management team that took effect on 1 August 2020 and the steps taken to address the Company's underperformance over the last financial year.
As noted in the Chairman's statement in the 2020 Annual Report, whilst the fundamental principles of the investment process have not changed, the Company's portfolio has been repositioned and the number of stocks has increased in order to reduce stock specific risk. The Board expects that these changes, which are ongoing, should bring about a significant improvement in performance. However, it will continue to keep investment performance under close review.
JPMorgan Funds Limited
Company Secretary
Name of contact and telephone number for queries:
Divya Amin 020 7742 4000
Numis Securities
Corporate Broker
Name of contact and telephone number for queries:
David Benda 020 7260 1000
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