10 Jan 2022 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310
Jupiter Emerging & Frontier Income Trust PLC (the "Company" or "JEFI")
Legal Entity Identifier: 213800RLXLM87NO26S30
Company Update
The Board of the Company announces that it intends to convene a general meeting of the Company (the "General Meeting"). The Board has carried out a shareholder consultation regarding the Company's redemption facility, through which shareholders are entitled to request the redemption of all or part of their holding of ordinary shares of 1 penny each ("Ordinary Shares") (the "Redemption Facility") on an annual basis. Taking into account the views of shareholders, the Board is proposing the Redemption Facility will be amended so that it is offered every three years, next to occur in June 2024; and that the maximum number of redemption requests that may be accepted at each redemption event will in aggregate be 20% of the Company's outstanding ordinary share capital. Operation of the Redemption Facility will continue to be at the discretion of the Board. Alongside the proposed changes to the Redemption Facility, the Board intends to implement a continuation vote every three years. Operation of the Redemption Facility will be conditional on shareholders approving the Company's continuation vote at the preceding annual general meeting of the Company.
The above changes require amendments to be made to the Company's articles of association (the "Articles"), which requires the approval of shareholders at the General Meeting. Alongside the proposed changes to the Articles to be considered at the General Meeting, the Board intends to put a resolution to shareholders in connection with the continuation of the Company. It is the Board's intention to recommend that shareholders vote in favour of the changes to the Articles and in favour of continuation of the Company. It is expected that the circular and notice of general meeting will be sent to shareholders in February 2022.
John Scott, Chairman of JEFI commented: "When the Covid-19 pandemic struck in 2020, the markets into which JEFI invests were particularly badly affected, being quick to fall and slower than the developed markets to recover. Having traded at, or close to, a premium for most of the time since our IPO in 2017, JEFI's shares have subsequently traded at a significant discount, presenting the opportunity for investors to buy in at a discount, in the knowledge that they can redeem at close to the prevailing net asset value per share every June. The experience of 2021, when some 30% of JEFI's shares were redeemed, served to demonstrate that the Redemption Facility as currently offered is incompatible with the long term viability of the Company.
"Taking into account the views of shareholders, the Board believes that the interests of the Company and of shareholders as a whole will be better served by amending the Redemption Facility in a manner which will limit the scale of future outflows, while at the same time offering shareholders a range of protections, including a triennial redemption programme and continuation vote. We retain our confidence in Ross Teverson and his team and take great encouragement from the recovery both in JEFI's net asset value and in the earnings from our investments."
Ross Teverson, Fund Manager of JEFI commented: "The Company's portfolio holdings have proven their resilience through what has been an unprecedented and challenging period for many emerging and frontier market businesses. Income generation has already recovered to above pre-Covid levels and we believe that a combination of attractive portfolio valuations and continued earnings growth should be conducive to a positive outlook for total returns in 2022."
Enquiries:
Magnus Spence / Nick Black
Jupiter Asset Management Limited, Company Secretary
020 3817 1000
investmentcompanies@jupiteram.com
Media contact:
Powerscourt
020 7250 1446
jupiter@powerscourt-group.com
10 January 2022