JP Morgan Fleming Asian Inv Tst PLC
22 February 2005
STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN FLEMING ASIAN INVESTMENT TRUST PLC
Investment Management
Following feedback from a number of the Company's major shareholders, the Board
has agreed with the Investment Manager that the Company should take more active
positions versus its benchmark, the Morgan Stanley Composite Asia Free Index
ex-Japan.
Accordingly, the Investment Manager will now be able to overweight or
underweight the benchmark by up to 15% for Hong Kong, Korea, Taiwan and China
and 12% for other markets within the benchmark. In addition, the Investment
Manager has been given discretion to invest up to 10% of the portfolio in
Australian stocks and has full discretion actively to manage the Company's
actual gearing level within a range of 90% to 120% invested.
As a result of these changes, the general decline in market volatility and
reduction in portfolio tracking error, it is anticipated that the number of
stocks in the portfolio will, over time and at the discretion of the Investment
Manager, reduce as a more active approach is introduced in order to improve the
potential for outperformance versus the benchmark.
Treasury Shares
The Board received shareholder approval on 4th February 2005 to permit, at its
discretion, the repurchase of up to 16,208,648 ordinary shares (being 10% of the
Company's issued share capital at the time of the passing of the special
resolution) and hold such shares in treasury for future reissue rather than for
immediate cancellation.
The Board believes that the active use of treasury shares is likely to enhance
liquidity in the Company's shares as well as to assist in managing both the
absolute level and the volatility of the Company's share price around its
prevailing net asset value.
Shares held in treasury may be re-issued at a price that is below the then
prevailing net asset value, but will not be reissued at a wider discount than
the size-weighted average buying-in discount level or at below the prevailing
bid price at that time.
No time limit has been specified on how long shares can be held in treasury and
such shares can be cancelled at the Board's discretion. In order to keep the
market fully informed of any treasury share operations, an announcement via RNS
will be made following any repurchase into treasury or sale from treasury
detailing the number of shares, price, discount and new size-weighted average
buying-in discount level. The Company also intends to publish a daily NAV
(Treasury) when any shares are held in treasury (which assumes that shares held
in treasury are reissued at the prevailing market price).
It is expected that the Board will regularly review and refine the guidelines as
necessary and it intends to put resolutions to next year's Annual General
Meeting to renew this facility.
Warrants
The Board would like to remind warrant holders that the final right to exercise
their warrants and subscribe for fully paid ordinary shares of 25 pence each in
the Company at a price of 100 pence per share is 28th February 2005. As at the
close of business on 18th February, the Company's mid market ordinary share
price was 100.75 pence and the estimated fully diluted net asset value 112.79
pence per share.
22nd February 2005
For further information:
Philip Jones.......................................................020 7742 6000
For and on behalf of
J.P. Morgan Fleming Asset Management (UK) Limited
This information is provided by RNS
The company news service from the London Stock Exchange
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