JP Morgan asks trust shareholders to roll over into renamed fund

The board of JP Morgan Income & Capital Investment Trust has proposed a voluntary winding up and reconstruction of the company.

Under the proposals, shareholders will be able to roll over all or part of their investment into a new fund called JP Morgan Income & Capital Trust (JPMICT).

The existing trust, which has a planned life to February 29, was last rolled over in 2002, when it changed its name from the Fleming Income & Capital Investment Trust. JPMICT will have a fixed life of about 10 years, with a scheduled wind-up date of February 28, 2018.

Jamie Streeter, the manager of the fund, will run JPMICT using a similar strategy. The fund will invest about 90% of its assets in British equities and the remainder in investment grade fixed-income securities.

The fund’s benchmark is 90% of the FTSE 350 index and 10% of the Merrill Lynch 5-10-year UK Sterling Corporate index for bonds.

Investors who choose to roll over into the fund will be able to select a combination of ordinary shares, zero dividend preference (ZDP) shares and cash. JPMICT units, which consist of two ordinary shares and one ZDP share, will also be available.

The trust will bear the costs of the restructuring, which are not expected to exceed £638,950. If the proposals are not approved, the winding-up resolution will be put to shareholders at a meeting on February 29.