Distribution Policy and Company Name Change

RNS Number : 6949V

JPMorgan Chinese Inv Tst PLC

04 December 2019

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN CHINESE INVESTMENT TRUST PLC

Distribution Policy and Company Name Change

The following amendment has been made to the 'Dividend Policy and Company Name Change' announcement released on 4th December 2019 at 7.00 a.m. under RNS No. 5737V

The information contained within this announcement constitutes inside information.

All other details remain unchanged.

The full amended text is shown below.

Legal Entity Identifier: 549300S8M91P5FYONY25

4^th December 2019

The information contained within this announcement constitutes inside information.

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 benchmark² 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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