Good News! A transfer of one of my SIPPs from one platform to another has finally been completed today (22nd June). I initiated the transfer on the 12th January this year so this has actually taken over 5 months. A totally unreasonable period of time for what should have been a simple transfer of cash and a few direct shareholdings of UK listed crest stocks. However their failure to collect the tax refunds on PID dividends on some of the holdings remains outstanding and my complaint about both parties involved in the transfer to the Financial Ombudsman is ongoing.
Two investment trusts I have holdings in are Montanaro European Smaller Companies Trust (MTE) and JPMorgan European Smaller Companies Trust (JESC). The latter company has decided to change its name to JPMorgan European Discovery Trust with a new TIDM code of JEDT. Shareholders were not given any say on the matter, although the company says it “had discussions with major shareholders and the wider investor base”. All I can say they did not ask me! If they had, I would have objected.
The company claims the former name was inappropriate as some of their holdings have large market capitalisations but the new one is totally meaningless. There are lots of other investment trusts with out of date and inappropriate names – such as Scottish Mortgage. It’s just pointless changing the name and the new one is a poor choice. Brand recognition is important in naming trusts and changing the name unnecessarily will not help. They could at least have chosen a less bland name.
The other trust (MTE) has decided to do a 10 for 1 stock split. The company gives no justification for the change although the usual excuse for such a change is to improve the marketability of the shares. But who are they fooling? A share split makes no difference to the value of shares held. The current share price is about 1700p but if Berkshire Hathaway can happily get by with a market price of $417,290 why would MTE be bothered?
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )