JPMorgan Asset Management launches first European income investment trust

JPMF Continental European Investment Trust has announced an innovative proposal to launch the first pan-European equity income share class.

They will have two share classes in issue Growth and Income. Each share class will be separately listed and traded on the London Stock Exchange.

Although the trust will have more than one class of shares, it will not be a split capital trust.

Each of the share classes will have an independent portfolio within JPMF Continental European IT, and as a result, the shareholders in one share will not have any call on the portfolio of the other share classes.

Andrew Murison, Chairman of JPMF Continental IT, said: We think that offering a European equity income option makes good investment sense for all shareholders and that the new structure will give them flexibility to meet their changing needs in a tax-efficient manner.

All shareholders may elect for the new income shares or retain their existing holding or a combination of the two.

There will be a periodic conversion mechanism that will allow investors to alter their investment profile to match their changing investment needs.

David Barron, Head of Investment trusts at JPMorgan Asset Management, said: There is growing demand from investors for diversified sources of equity income from markets other than the UK.

European valuations are attractive, earnings growth is supportive and we believe the scope for European companies to grow their dividends is good. The new income shares will meet this demand and will follow a proven investment approach that ahs consistently delivered over the years.