Now with added income

New dividend policy approved

5 July 2017

Shareholders of the Martin Currie Asia Unconstrained Trust have overwhelmingly voted in favour of the proposed resolution to allow payment of dividends from capital.

The final dividend for the financial year ended 31 March 2017 was approved by shareholders as 13.68p per ordinary share including 8.43p to be paid out of capital. 

The total annual dividend of 16.28p is an increase of over 110% on the previous financial year (7.75p) and represents a dividend yield of approximately 4.5%, based on the share price at close of business on 31 March 2017.

The final dividend for the financial year ended 31 March will be paid on 11 August to shareholders on the register on 21 July 2017.

Harry Wells, Chairman, commented: “It is the Board’s intention to repeat the capital distribution in future years, to be paid on an annual basis along with the final dividend and set by reference to 2% of the prior year-end ex-income Net Asset Value (NAV). The Board believes that the new dividend policy benefits existing shareholders, whilst making the shares attractive to new buyers and appealing to retail investors, who will be able to participate in the potential for capital growth.”

There will be no change to the Company’s investment policy. This offers a differentiated and unconstrained approach for investment in Asian markets. Since the mandate was adopted in August 2014, shareholder returns have exceeded the objective of delivering returns commensurate with Asian economic growth.

Martin Currie Asia Unconstrained Trust reported its best annual return for five years earlier in the year.

 

Important information

*Source: Martin Currie, for the 12 months period to 31 March 2017. The net asset value is inclusive of income with dividends re-invested. 

The value of investments and the income from them may go down as well as up and is not guaranteed. An investor may not get back the amount originally invested. Investors may be subject to tax on their dividends. The yield is calculated using the dividend per share divided by the year end share price, share price as at 31 March 2016 was 364.5p. 

The majority of charges will be deducted from the capital of the company. This will constrain capital growth of the company in order to maintain the income streams. There is a risk to capital as a result of proposed change to dividend policy.