Charter European board chooses BlackRock trust

The Charter European Trust board has chosen not to use the open-ended Jupiter European fund, preferring instead to use the BlackRock Greater Europe investment trust as a rollover fund.

The plan has won backing from Midas Investment Management, which had earlier called on the board to reconsider the choice of the Jupiter European fund.

Investors will now be able to roll over into a closed-end fund once the fund winds up next year.

A spokesman says: “The board believes that shareholders will benefit from the increased size and liquidity of BlackRock Greater Europe, and the resultant lower total expense ratio that comes with the fixed costs of BlackRock Greater Europe being spread over a larger asset base.

“In addition, shareholders should benefit from the six monthly tender offers which the board of directors of BlackRock Greater Europe has the discretion to implement and the resultant reduction in the discount to NAV [net asset value] at which the BlackRock Greater Europe Shares trade.”

However, investors will not be able to realise their investment once the restructuring process begins.

The BlackRock Greater Europe investment trust will issue a tender offer, yet, the board says there is “no guarantee” investors will be able to realise more than 20% of their holding in the trust through the offer.

BlackRock will contribute £120,000 to the costs associated with the restructuring scheme.

To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.