Reconstruction of M&G High Income Investment Trust

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA OR THE REPUBLIC OF SOUTH AFRICA

JPMorgan Elect plc

Reconstruction of M&G High Income Investment Trust P.L.C

The Board of JPMorgan Elect plc ("Elect" or "the Company") is pleased to announce that heads of terms have been agreed with the board of M&G High Income Investment Trust P.L.C ("HIIT") in relation to that company's forthcoming reconstruction. HIIT, with £433 million of net assets, has a fixed life and is due to wind up on or around 17 March 2017.

It is expected that;

· the reconstruction of HIIT, which will be subject to the approval of HIIT's shareholders, will be effected through a scheme of reconstruction under section 110 of the Insolvency Act 1986.

· subject to the approval of Elect's shareholders, each of Elect's share classes would be made available, with Elect being the only closed-ended fund rollover option for HIIT's shareholders. The new Elect shares will be issued at a modest premium to their prevailing net asset values such that Elect shareholders will not suffer any NAV dilution as a consequence of Elect's participation in HIIT's reconstruction.

Subject to take-up, the anticipated benefits of this proposal to shareholders of Elect include an increase in the future marketability and liquidity of the Company's shares and a reduction of the ongoing charges ratio.

Further details on the proposed transaction, including an Elect shareholder circular and prospectus, will be made available early in 2017.

For further information:

Richard Plaskett

JPMorgan Funds Limited, Client Director

020 7742 3422

Rhys Williams

JPMorgan Funds Limited, Company Secretary

020 7742 5073