03 December 2020
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Jupiter UK Growth is to be wound up after the investment trust's board confirmed it had struck a deal with Brown Advisory to offer shareholders the chance to transfer their investment into the firm's Global Leaders fund.
The board confirmed in October that it had opted to liquidate the trust as a result of a substantial decline in its total market capitalisation, following a period of sustained poor performance.
Richard Buxton (pictured) was handed management duties of the trust in June, with the announcement coming in February following a period of poor performance under Steve Davies, who has now left Jupiter to pursue other opportunities.
The trust is currently trading on a 6.8% discount to its net asset value of £223m, according to Association of Investment Companies data, with its share price having fallen by 32.9% since the start of 2020.
Its liquidation will see a scheme of reconstruction under the 1986 Insolvency Act, whereby investors are offered a choice of a "cost and tax efficient" transfer of new shares of the Brown Advisory Global Leaders fund or a cash redemption.
Brown Advisory Global Leaders targets capital appreciation by investing primarily in global equities. It is currently proposed that investors that opt for the fund will be issued sterling class B distribution shares.
The Jupiter UK Growth board said it had selected the fund as its rollover option having taken into account shareholder feedback.
The £1bn AUM UCITS vehicle, which is managed by Michael Dillon and Bertie Thomson, has returned 21.1%, 54.3% and 96.6% over one, three and five years, respectively, according to FE fundinfo.
Peers in the IA Global sector have averaged gains of 18.4%, 31% and 61.8% over the same time periods respectively.
Shareholder documentation setting out full details of the proposed scheme of reconstruction, the rollover option and convening a shareholder meeting "will be sent out in due course", the Jupiter UK Growth board said.
This article was first published by our sister title Investment Week
