Interim Management Statement

RNS Number : 2002K

JPMorgan European Smaller Co.

16 August 2012

 



JPMorgan European Smaller Companies Investment Trust plc

Interim Management Statement (Unaudited)

For the three months ended 30th June 2012

This interim management statement relates to the quarter from 1st April 2012 to 30th June 2012 and contains information that covers that period, unless otherwise stated. 

Financial performance - Cumulative Total Return *

	1 month	3 months	1 Year	3 Years	5 Years	10 Years
Share price	0.5%	-14.1%	-33.1%	19.2%	-22.9%	184.6%
Net asset value	0.7%	-12.3%	-31.2%	22.6%	-19.0%	187.1%
Benchmark	3.7%	-10.4%	-26.8%	19.2%	-22.4%	135.8%

* Total return with net dividends reinvested

Source: JPMAM/Morningstar

Financial position

	As at 30th June 2012	As at 15th August 2012
Total assets	£299.8m	£313.3m
Share  price	620.0p	653.0p
Net asset value Discount Gearing	761.9p 18.6% 91.5%	763.04 14.4% 100.3%

Share prices shown are closing bid

Net asset values are cum income with debt at fair value

Source: JPMAM/Morningstar

Material events

On 9th May 2012 the Board of JPMorgan European Smaller Companies Trust plc announced its preliminary decision to implement a Reverse Tender Offer for up to 10 per cent. of the Company's Ordinary Shares with the objective of providing liquidity to the market whilst also providing an NAV uplift to the ongoing holders.

Under the proposed Reverse Tender the price at which tendered Shares would be purchased (the 'Strike Price') would be determined by applying the highest absolute value (i.e. the lowest Discount to NAV) at which the Company could purchase all the Shares available in the Reverse Tender Offer. Shares offered for tender at a discount to NAV which exceeded the Strike Price would be accepted in full whilst Shares offered for tender at the Strike Price would be accepted on a pro rata basis. Shares offered for tender at a discount to NAV which was less than the Strike Price would not be accepted.

Material events post 30th June 2012

At the Company's Annual General Meeting held on 18th July 2012, all of the ordinary resolutions put to shareholders were passed. In addition, two Special Resolutions were passed which allow the disapplication of pre-emption rights on the allotment of new ordinary shares, and allow the Company to make market purchases of up to 5,983,828 ordinary shares, representing 14.99% of the Company's issued share capital.

Further to the announcement made by the Company on 9th May 2012, at an additional General Meeting held on 18th July 2012, shareholders voted in favour of a Special Resolution in connection with a reverse auction tender offer for up to 10 per cent of the issued share capital of the Company (the 'Tender Offer').

On 20th July 2012 the Board announced the results of the Reverse Auction Tender Offer for up to 10 per cent of the issued share capital of the Company in issue on 18th July 2012. Eligible Shareholders were able to tender for purchase some or all of their Shares at their chosen level of discount, within the Discount Range (being from 3 per cent to 15 per cent) to the Tender NAV per share. Valid tenders were received from Shareholders in respect of 20.8 million Shares, representing approximately 52 per cent of the issued share capital of the Company. Therefore, 3,991,880 Shares (representing 10 per of the issued share capital of the Company on 18th July 2012) would be repurchased under the Tender Offer and cancelled. The Strike Price Discount to be applied in determining the Tender Price would be 9 per cent.  The Tender Price was been set at 690.9153 pence per Share.

On 27th July 2012, further to the announcement of the Reverse Auction Results and Tender Price on 20th July 2012, the Board announced that settlement of the Reverse Auction Tender Offer consideration would be made on 30th July 2012. Following the implementation of the Tender Offer, the Company would have 35,926,923 Ordinary Shares of 25 pence each in issue. Therefore, the total number of voting rights in the Company would be 35,926,923. 

On the 18th July 2012, the Board of JPMorgan European Smaller Companies Trust plc announced that, following his appointment as Chairman of the Prudential Group plc, Paul Manduca had decided to step down from the Board on 31st December 2012. Carolan Dobson would succeed him as Chairman with effect from 1st January 2013.

Material Transactions

Changes to share capital

	Issued Shares
As at 1st April 2012		40,083,803
Shares bought back and cancelled		165,000
Shares bought back into Treasury Shares cancelled from Treasury Shares issued		- - -
As at 30th June 2012		39,918,803

Since the period end and up to the date of this announcement, the Company has bought back an additional 3,991,880 shares for cancellation.

Portfolio Analyses

Ten largest holdings as at 30th June 2012

Stock name	Country	Weight %
Nutreco Holding	Netherlands	3.5
Symrise	Germany	3.1
MTU Aero Engines	Germany	3.1
GN Store Nord	Denmark	3.1
Atos Origin Eurofins Scientific	France France	2.9 2.8
TGS Nopec Geophysical	Norway	2.3

Fuchs Petrolub                                                         Germany                                      2.2

Lottomatica                                                              Italy                                              2.2

Freenet                                                                     Germany                                      2.2

Sector breakdown as at 30th June 2012

Sector	% of Portfolio
Consumer Discretionary	15.9
Industrials	15.3
Health Care	14.2
Financials	10.8
Information Technology	9.5
Materials	9.1
Consumer Staples	7.5
Telecommunication Services Energy	5.0 4.7
Utilities	0.8
Cash	7.2
Total	100.0

By order of the Board

Jonathan Latter, for and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary

16th August 2012

Registered office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ

Telephone: [phone]

This interim management statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

ENDS

Please note that up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can be found at www.jpmeuropeansmallercompanies.co.uk

 

END

 

 

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