JPMorgan Chinese Inv Tst PLC Distribution Policy and Company Name Change (5737V)
December 04 2019 - 2:01AM
UK Regulatory
TIDMJMC
RNS Number : 5737V
JPMorgan Chinese Inv Tst PLC
04 December 2019
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN CHINESE INVESTMENT TRUST PLC
Distribution Policy and Company Name Change
Legal Entity Identifier: 549300S8M91P5FYONY25
4(th) December 2019
The Board of JPMorgan Chinese Investment Trust plc (the
"Company") today announces proposals to change its distribution
policy and its name.
The Company's objective is to provide long-term capital growth
by investment in 'Greater China' companies being those quoted on
the stock exchanges of 'Greater China' or which derive a
substantial part of their revenues or profits from the region.
The Company has a strong performance record, significantly
outperforming its benchmark over 1, 3 and 5 years. Over the last 5
years to 30(th) November, 2019 the Company has delivered a NAV
total return of +84.7%(1) compared to its benchmark(2) which
returned +62.6%(1).
The Board remains supportive of the Company's investment
strategy and believes that the Company will continue to outperform
over the long-term. However, while the Board has no desire to
change the Company's investment approach or how the portfolio
managers select stocks for the portfolio, it is aware that a number
of investors are seeking investment opportunities that provide a
reliable level of income alongside capital growth. In the current
low interest rate environment, the Board believes that investors
will continue to be attracted to income generating investments.
The Board is therefore proposing a new dividend policy to pay
enhanced dividends through the distribution of capital gains as
well as net revenue. Under this new policy, the Board aims to set a
target dividend, in the absence of unforeseen circumstances,
equivalent to 4 per cent. of the Company's NAV on the last business
day of the preceding financial year. The target dividend will be
announced at the start of each financial year, to provide clarity
to shareholders over the income stream they can expect during the
following 12 months, and will be paid by way of four equal interim
dividends on the first business day in March, September, June and
December.
The Board will propose a resolution at the next Annual General
Meeting in February 2020 to amend the Company's Articles of
Association to allow the Company to distribute capital as dividends
and to implement this new dividend policy.
The Board believes that its shareholders will be supportive of a
move designed to create market differentiation for the Company and
attract new buying interest from retail investors who exhibit a
strong desire for income. The Board also believes that this new
dividend policy will significantly enhance the Company's appeal to
both new and existing investors, improve liquidity and, over time,
result in a narrowing of the discount.
In light of the proposed new dividend policy, the Board will
also propose a resolution at the Annual General Meeting to change
the Company's name to JPMorgan China Growth & Income plc.
The Board recommends these proposals to shareholders for
approval at the Company's next Annual General Meeting in February
2020.
Enquiries:
Simon Crinage
JPMorgan Funds Limited
020 7742 3445
Neil Langford
Chris Mills
Winterflood Investment Trusts
020 3100 0000
(1) Source: Morningstar / J.P. Morgan
(2) MSCI China Index with net dividends reinvested, in sterling
terms. Prior to 26(th) January 2016, the benchmark was the MSCI
Dragon Index.
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END
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