Performance Conditional Tender & Dividend E...

Dissemination of a regulatory announcement that contains inside information according to Regulation (EU) No 596/2014 (MAR).

Invesco Asia Trust plc

LEI: 549300YM9USHRKIET173

HEADLINE: Introduction of Performance Conditional Tender Offer and Dividend Enhancement

The Board of Directors of Invesco Asia Trust plc has been encouraged by the progress made by the Company since the introduction of its new Corporate Proposition in the half-yearly financial report to 31 October 2018. Shareholders demonstrated their support for the Company with a large majority voting in favour of continuation at last year’s Annual General Meeting, and the rebound in NAV performance following the onset of the COVID crisis in March of this year offers grounds for optimism.

Nevertheless, the Board is keen to see that positive momentum maintained; and, more particularly, is cognisant that more needs to be done in an effort to meet the Company’s long-standing discount target of 10 per cent. Accordingly, the Company is today announcing two further initiatives intended to help to address the Company’s share rating:

Conditional tender offer

The Board confirms its intention to introduce a performance-related conditional tender offer. Under the terms of the proposal, the Board is undertaking to effect a tender offer for up to 25 per cent. of the Company’s issued share capital at a discount of 2 per cent. to the prevailing NAV per Share (after deduction of the costs of the tender) in the event that the Company’s NAV cum-income total return performance over the five year period ending 30 April 2025 fails to exceed the Company’s comparator index, the MSCI AC Asia ex Japan Index (total return, in sterling terms) by 0.5 per cent. per annum over the five years on a cumulative basis.

The tender offer will be subject to shareholder approval of the requisite tender authority in due course. If such shareholder authority is given and the tender offer is subsequently triggered, a circular and tender form will be sent to shareholders setting out the full terms and conditions of the tender offer and the procedure for tendering shares.

The Board recognises the importance of the Company’s investment performance in generating returns for shareholders and supporting the share rating. Shareholders already have the opportunity to vote on the continuation of the Company every three years, but the Directors believe that also providing shareholders with the option to tender a proportion of their shares for cash at a price close to NAV if the Company underperforms constitutes a pragmatic and attractive initiative, particularly if the shares were to be trading at a material discount to NAV at the time.

Dividends

Shareholders are being invited to approve the Company’s dividend payment policy at the Annual General Meeting next week by way of an advisory resolution. The dividend payment policy provides for the declaration of two interim dividends in respect of each accounting year, with payments made in November and April. The Board intends to maintain this policy going forward, but wishes to offer the prospect of enhanced dividend payments within this framework. Accordingly, the Board will now aim to pay, in the absence of unforeseen circumstances, a regular six-monthly dividend equivalent to 2 per cent. of the Company’s NAV on the last business day of September and February. These dividends will be paid from a combination of the Company’s revenues, revenue reserves and capital reserves as required.

The Board remains supportive of the Company’s investment strategy and its potential for strong long-term performance, and there is no intention to change the Company’s investment policy nor the portfolio manager’s investment approach as a result of the new dividend policy.

Chairman Neil Rogan commented: “The performance-related conditional tender and the enhanced dividend policy are being introduced to spark new demand for the Company’s shares. Investment trusts have a variety of tools available that differentiate them from open-ended funds. When we believe that they will have an impact, we will deploy them.”

This announcement contains inside information.

Invesco Asset Management Limited

Corporate Company Secretary

28 August 2020

Enquiries:

Neil Rogan, Chairman
Contact through Investec

Investec – Corporate Broker

David Yovichic - 020 7597 4000