Jupiter is launching an investment trust which will initially invest in other investment trust share...
Jupiter is launching an investment trust which will initially invest in other investment trust shares, writes James Thorneley.
The Jupiter Investment Trust is being launched for the group's employees. In May 1995 Commerzbank took over the fund management group and gave options to senior staff which mature this year. These options are being exchanged for loan notes which can either be redeemed for cash, crystallising a CGT liability, or for shares in the trust.
Employees rolling over into the trust will crystallise their CGT liability when they come to sell their shares. The investment objective of the trust is to achieve long term capital growth from a portfolio, the majority of which will be invested in pooled investment vehicles.
In March 1999 Mercury launched its Asset Allocator investment trust for a similar purpose. Like the Mercury trust the Jupiter trust is likely to trade on a narrow discount or even a premium as the shares will be so tightly held. Mercury Asset Allocator shares are currently trading on a 4.3% premium to NAV. Since launch the shares have risen by around 32%.
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