Increased liquidity, more thinly spread costs and a reduced total expense ratio are the promises hel...
Increased liquidity, more thinly spread costs and a reduced total expense ratio are the promises held out by the board of JPMorgan Fleming Chinese Investment Trust, which is seeking shareholder agreement to issue new shares to cut the fund's current 5.6% premium.
Shares in the trust have jumped from a low of 33.5p in late March, when investments in China were ravaged by Sars, the flu-like illness.
Since then the recovery has sent shares up to 58p, while the net asset value has gone from 42p on 12 March to more than 55p currently.
Premiums to NAVs are best avoided in the investment trust world, and the proposal to issue 5.8 million new shares worth £1.45m is intended to cut it down in the face of strong demand, says JPMF client director Simon Crinage.
"People are looking for growth stories and China is the growth story of this century."
Current shareholders must vote in favour of an ordinary resolution being put at an extraordinary general meeting set for 3 September for the new shares to be issued.
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