The J.P. Morgan Global Core Assets trust has outlined its plans to wind down the £158m portfolio following a bout of poor performance.
Returns have fallen 5.6% since it launched in late 2019, and those who invested at its peak in September 2022 would be 23.5% worse off today, hence why shareholders voted to close down the trust in September.
Its plan to wind down the portfolio will involve the gradual selling of its assets by the end of next year. It aims to have the first 15%-20% sold and returned to shareholders in the first quarter of 2025.
See also: JPMorgan to merge beleaguered Japan trusts
The trust noted that the process will need to be drawn out due to the illiquid nature of its holdings. By selling its assets in an “orderly manner” over the coming year, it intends to “optimise shareholder value and with regard to the time-value of money”.
Its plans will also include converting the existing shares into ordinary shares that are redeemable at the option of the company, which the trust says will be less costly.
Shareholders will vote on whether to execute this wind-down plan at its extraordinary general meeting on 20 December.
