LONDON - Jupiter Green Investment Trust Plc (JGC) has announced a scheme for reconstruction and voluntary liquidation following a strategic review, providing shareholders with options for their investment. This decision comes despite the trust’s positive performance in the six months leading up to September 30, 2024, where it delivered a net asset value (NAV) total return of 2.5% and a share price total return of 19.3%.
The trust’s performance outpaced its benchmark, the MSCI World Small Cap Total (EPA:TTEF) Return Index, which saw a 0.8% decrease over the same period. The narrowing of the trust’s discount from 31% to 20% also contributed to the share price return.
JGC Chair Michael Naylor expressed confidence in the environmental solutions investing sector but acknowledged the need for a pragmatic approach in the current market. The proposed plan offers shareholders the opportunity to roll their investment into the Jupiter Ecology fund, which is managed by the same team, or to opt for a cash exit.
The trust’s decision to liquidate follows a period of evaluating the future of JGC, which faced challenges due to its size and market conditions for investment trusts. Although JGC is trading at a narrow discount compared to its peers in the AIC Environmental sector, its smaller size has posed liquidity challenges for larger investors.
The board had previously attempted to manage the discount through share buybacks but determined that the interests of shareholders would be better served through the reconstruction scheme. The Jupiter Ecology Fund offers a more liquid and cost-effective alternative with a broader investment approach compared to Jupiter Green’s focus on smaller companies and early-stage innovation since September 2020.
Shareholders will have the choice of an uncapped cash exit at a modest discount to NAV, with the scheme expected to take effect in the first quarter of 2025. The environmental solutions sector continues to experience strong growth, driven by the global transition to net-zero and the demand for sustainable infrastructure.
This news article is based on a press release statement from Jupiter Green Investment Trust Plc.
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