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New share offering for J.P. Morgan Global Emerging Markets Income Trust

New share issue available for ISA investors

LONDON 21 FEBRUARY 2011, JPMorgan Global Emerging Markets Income Trust has announced its intention to raise further capital through an issue of new shares.

Following continued investor demand since its launch in July 2010, the Board of the investment trust is providing the opportunity for existing and new investors to gain exposure to dividend-paying companies across global emerging markets, through the form of placing and offer for subscription of conversion shares (C shares)*.

The share issue is expected to appeal to a broad range of investors keen to diversify their income portfolios and in particular to those looking to top up their existing ISAs and invest in the new ISA period.

Chairman of the Board of the JPMorgan Global Emerging Markets Income Trust, Andrew Hutton said, “Since the trust’s launch in 2010 we have experienced continued investor demand from investors seeking income from emerging markets. The C share offer is designed to meet that demand. Our investors have the prospect of both exciting growth from emerging markets and a higher dividend yield than can be obtained in many developed markets.”

Commenting on the investment strategy, Richard Titherington, CIO of Emerging Market Equities at J.P. Morgan Asset Management and Manager of the JPMorgan Global Emerging Markets Income Trust said, “This investment trust is capturing a new income opportunity for investors and offering diversification of income away from UK income investments. We believe in the long term fundamentals of emerging markets and, while volatile, they can continue to provide investors with growth and, increasingly, income as companies become more inclined to distribute profits to shareholders.”

The JPMorgan Global Emerging Markets Income Trust seeks to deliver a yield above that of the FTSE All Share (2.8% as at 18th Feb 2011) and offer a progressive dividend (the Company recently announced its first interim dividend to shareholders of 1.00 pence per share for the period to 28th January 2011). The investment trust holds between 50 and 70 stocks with a diverse sector and geographical breakdown**.

The prospectus for the C Share issue will be available from early March 2011 and the offer period will be open for investors throughout the current ISA season and also for early bird 2011/12 ISA applications with the offer closing in Mid April. Further details on the Company as well as the opportunity to register for a copy of the prospectus are available at www.jpmglobalemergingmarkets.co.uk.

Winterflood Investment Trusts is acting as sponsor.

* What are C Shares?

C Shares are a separate class of shares, with a limited life, issued by investment companies. The “C” stands for “Conversion” and this gives a clue as to how they work.

JPMorgan Global Emerging Markets Income Trust C Shares

C Shares are a convertible share class, held separately from the existing portfolio, which convert into Ordinary shares once the C Share pool of assets has been invested. They are a straightforward and fair way for an investment trust to carry out a substantial new fund raising.

Ordinary shares in the Company have traded at an average premium of 5% since launch. A C Share issue aims to enable investors to buy new Ordinary shares at a more favourable price than has generally been available when buying existing Ordinary shares through the secondary market.

It is intended that the Company will conduct a placing and offer for subscription of C Shares at an issue price of 100p per C Share. Both of these offer terms has a specific meaning, specifically;

• Placing; offering shares to institutional shareholders. To participate in this placing an applicant’s order needs to be in excess of £50,000 and they are settled via CREST – the paperless settlement system used by the LSE.
• Offer for Subscription; an offer of new C Shares to new existing shareholders. To apply under the offer for subscription, shareholders of any size need to fill in the application form in the prospectus (or the bespoke forms designed specifically for JPMorgan plan holders). The minimum application is £1,000. Unlike shares acquired via a placing, new shares issued via an offer for subscription can be put directly into an ISA.

Benefits to new shareholders

• After deductions to cover costs, the C Shares will be converted into Ordinary shares based on the NAV of the Company, rather than the share price available in the secondary market. Provided the Company’s shares continue to trade at a premium in the secondary market in the way they have done since launch, investors will benefit from buying Ordinary shares at a lower price than if they purchased them in the stock market. Using the example above, £1000 invested in the C Share issue would result in 899 Ordinary shares being received following conversion. If Ordinary Shares had been purchased in the open market on an average 5% premium to NAV, the same investment would result in 870 Ordinary Shares - A difference of 29 shares for the same investment.

Benefits to existing shareholders

• following Conversion the issued ordinary share capital will increase, which should help to meet investor demand for Ordinary Shares and improve the liquidity of the Ordinary Shares;
• an increase in the size of the Company will spread its fixed operating expenses over a larger issued share capital;
• the net proceeds of the Issue will be accounted for and managed as a distinct pool of assets until the conversion date. Ordinary Shareholders will not therefore, as a result of the Issue, participate in a portfolio containing a substantial amount of uninvested cash before the conversion date;
• No dilutive impact to NAV per share (whether shareholders choose to subscribe or not.)
• The Directors have considered the potential impact of the Issue on the payment of dividends to Shareholders and will take steps to ensure that it will not result in any material dilution of the dividends per Share that the Company may be able to pay in its first financial year, ending on 31 July 2011.
• The C Share issue will be priced no more favourably than the Company’s IPO price.
• Costs will be absorbed by the C Share pool prior to conversion, however, to the extent that the costs and expenses amount to more than an aggregate of 1.62 pence per C Share, the excess will be attributed to the NAV of the Company following the conversion date, such that all Shareholders bear such excess.
• Any resulting proceeds, if any, after deductions, will be retained by existing shareholders.

** Sector and geographical breakdown (to 31.01.11)

Sector	Fund %
Consumer Discretionary	9.15
Consumer Staples	8.44
Energy	6.99
Financials	24.88
Industrials	8.13
Information Technology	16.18
Materials	11.94
Telecommunication Services	16.28
Utilities	6.60

Country	Fund %
Brazil	12.00
Chile	1.18
China	18.43
Croatia	1.79
Czech Republic	1.20
India	1.43
Indonesia	2.32
Korea	6.60
Luxembourg	0.58
Malaysia	4.35
Mexico	2.11
Philippines	1.53
Poland	3.46
Qatar	4.51
Russia	3.40
Saudi Arabia	2.75
South Africa	10.84
Taiwan	18.96
Thailand	5.72
Turkey	5.45

Contacts

J.P. Morgan Asset Management
Jayne Fieldhouse, Media Relations
Telephone: 020 7742 8337
Email: Jayne.e.fieldhouse@jpmorgan.com

Lansons Communications
Lucy Banks
Telephone: 020 7294 3689
Email: lucyb@lansons.com

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