It’s not often an investment trust gets to issue new shares at a premium to NAV (net asset value) but being one of the UK’s most popular funds surely helps.

That’s the case with JPMorgan Global Growth & Income (JGGI), which today announced it would raise up to £40 million in order to satisfy ‘ongoing demand in the market’ for its shares.

PREMIUM RATING

Thanks to JGGI’s strong performance over the course of 2023, the trust traded at an average premium to NAV of 1.19% allowing the company to issue just under 51 million new shares to satisfy demand from existing investors.

Interestingly, today’s announcement not only refers to ongoing demand from existing customers but an approach by ‘a large wealth manager who has indicated interest in JGGI shares’.

The placing, which is being managed by Winterflood Securities, will be at a 0.6% premium to the last-published cum-income NAV with the price to be announced on 20 February.

There will be a retail offer for up to €8 million (£6.8 million) and the new shares will be exempt from stamp duty.

CONSISTENTLY POPULAR

The £2.3 billion JPMorgan trust has always been popular with retail investors, particularly since it absorbed the venerable Scottish Investment Trust following its disastrous five-year foray into ‘contrarian’ investing.

Last month, the fund revealed it would absorb the assets of JPMorgan Multi-Asset Growth & Income (MATE), giving it even greater scale and allowing it to reduce its management fee further across an even wider shareholder base.

While it could in no way be described as a ‘tech’ fund, JGGI does have exposure to several of the ‘Magnificent Seven’ as well as European and Asian technology stocks.

 

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