JP Morgan European (JETI)

[barchid]

I am struggling to understand this trust with its separate classes of shares which can be swapped around on a formula. I was looking for a european trust on a discount with a respectable yield, then looking into it further discovered that it contains growth & income shares. Is there any reason for doing this in a single trust rather than having 2 trusts, a euro income & a euro growth ?
I feel certain I am missing something here and would be most grateful for some guidance.

[jonesa1]

All explained here: https://am.jpmorgan.com/gb/en/asset-man ... ean-jpm-it

There are 2 pools of investment within the one trust. JPM allows investors to switch between the 2 pools without creating a capital gain. No idea whether anyone finds it useful.

[barchid]

Jonesea1
Thanks for the link, I had not realised it was a cgt avoidance scheme. I agree with you, who would find it useful ?

[Lootman]

I had not realised it was a cgt avoidance scheme. I agree with you, who would find it useful ?

It would be useful if there were a full range of different funds which could be exchanged into each other without creating a tax event. Such schemes are quite common with offshore umbrella funds, and allow you to make as many switches as you want whilst deferring all tax liability until you eventually liquidate your investment.

But in this case it merely enables a switch between "growth" and "income", and just within Europe, so it is of limited utility. It's possible that HMRC try to deter fund managers from employing too much of a CGT-friendly scheme whereby you can swap between different share classes of the same fund family taxlessly. But I have heard of the other odd example here and there.