JPMorgan Indian outlines plans following detailed review of options
JPMorgan Indian Investment Trust PLC on Monday outlined a number of proposed operational changes following its detailed review of options for the future of the company.
The investment company, which is the largest London-listed trust providing exposure to Indian equities with long-term growth potential, said it has concluded that shareholders will be ‘best served’ in the current environment with its existing investment strategy.
JPMorgan Indian intends to launch a tender offer for up to 30% of its outstanding share capital, which will provide a cash exit at lose to net asset value less costs. This is expected early in its third quarter of financial 2025, ending September 30.
The trust will also introduce a triennial tender offer for 100% of its outstanding share capital at a 3% discount to the prevailing NAV, the first of which is due to launch in the second quarter of financial 2028.
JPMorgan Indian also on Monday proposed dividend payouts totalling at least 4% of its net asset value at the end of the preceding financial year, which will be paid through four equal interim dividends in December, March, June and September each year.
This will differentiate the firm from its peers, as this would make it ‘the only Indian investment company paying a dividend at this time’, said JPMorgan Indian.
Meanwhile, with effect from October 1, the trust’s investment management fee with JPMorgan Funds Ltd will change to 0.65% on the first £300 million of the lower of the company’s market capitalisation or net assets, and 0.55% in excess of £300 million.
This compares to its prior arrangement of 0.75% on the first £300 million and 0.60% in excess of £300 million.
‘The board is pleased to share the outcome from a detailed review of the company’s future strategy, following a challenging period of underperformance. Shareholder feedback confirmed the continued need for a large Indian equity focused investment company, providing exposure to the long-term growth potential of the Indian market,’ said Chair Jeremy Whitley.
‘We therefore believe this comprehensive set of proposals, coupled with JPMF’s additional investment and commitment to the company, should help to address the recent performance challenges and the discount at which the shares trade. This is a turning point for JII and as the performance rebuilds, we hope to set the company on a pathway to grow once again.’
Shares in JPMorgan Indian were up 5.9% at 1,080.00 pence each in London on Monday morning. The stock has risen 13% over the past year.
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