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JPMAM REMINDS INVESTORS ABOUT DATE FOR CONVERSION BETWEEN JPM EUROPEAN INVESTMENT TRUST SHARE CLASSES

Jan 18, 2007

Shareholders in either of the two share classes – Growth and Income - are able to convert some or all of their shares into shares of the other class in March and September of each year.  This conversion mechanism allows shareholders to alter their investment profile to match their changing investment needs without triggering a capital gains tax liability.

Investors wishing to convert between the two share classes without incurring a capital gains tax liability will need to make their instruction any time in February 2007 in order to meet the March conversion date.  Shareholders need to complete and return an instruction conversion form which is available by logging onto www.jpmeuropean.co.uk or telephoning 0800 40 30 30.

The £421m JPM European Investment Trust was launched in August 2006 as a response to growing investor demand for diversified sources of equity income from markets other than the UK.  JPM European Investment Trust is the first European income investment trust to offer capital growth from continental European investments and income from pan-European equities.

Although the Trust has more than one class of share it is not a split capital trust.  Each share class has an independent portfolio within JPM European Investment Trust, and as a result, shareholders in one share class will not have any call on the portfolio of the other share class.  Each share class is separately listed and traded on the London Stock Exchange.

James Saunders Watson, Head of Sales and Marketing for Investment Trusts at JPMAM said: “Investors of JPM European Investment Trust have the flexibility to decide when to focus on growth or income.  Based on lifestyle choices and market conditions, shareholders have the unique ability to control how much exposure they have to continental European stockmarkets by switching between share classes up to twice a year without incurring capital gains tax.  Investors also benefit from JPMAM’s extensive expertise in both equity and fixed income markets, including the research resources of the respected European Equities Group.”

JPM European Investment Trust has been designed to fit with investor lifestyle choices.  For investors looking for long-term capital growth to meet some future need, such as school or university fees or their retirement, Growth shares, which invest in continental European stocks, would be a suitable strategy.  However, should they wish to focus on a growing income stream with the prospect of long-term capital growth, they can convert, tax free, to Income shares, which focus on pan European investments. 

In the 12 months to 31 December 2006, Stephen Macklow-Smith and Alexander Fitzalan Howard, co-managers of JPM European Investment Trust, increased the Growth Shares’ net asset value by +24% and the return to shareholders by +25% against the benchmark (FTSE World Europe (ex UK) Net) which grew +20% over the same period. 

Over a 5 year period to 31 December 2006, JPM European Investment Trust Growth Shares’ net asset value increased by +73% and the return to shareholders was up by +82% against the benchmark (FTSE World Europe (ex UK) Net) which grew +58% over the same period.