JPMAM Investment trusts continue to offer dividends

JPMorgan Asset Management says investment trusts continue to pay dividends to shareholders, despite market conditions.

The Group says investment trusts have an advantage over other investment vehicles in their ability to continually provide smooth annual dividend payments. This means despite underlying performance investors continue to receive a steady income from their investment.

Many more established investment trusts have built up significant revenue reserves resulting from their ability to retain up to 15% of their annual income. The boards of these companies are able to enhance annual dividend payments to shareholders by drawing on their reserves to cover any shortfall in the income they receive during market downturns, such as experienced today.

James Saunders Watson, Head of Sales and Marketing for Investment Trusts at JPMorgan Asset Management said, "In an uncertain market environment the depth of income reserves on long established investment trusts enables the board to strategically smooth shareholders' dividends. This particularly benefits investors when earnings per share are under pressure."

Investors in investment trusts often benefit from regular dividends paid to them and can use it for extra income throughout the year or reinvest it.

Saunders Watson went on to say, "The demographic of investors in investment trusts, and indeed other forms of investment, is not limited to high net worth individuals, so dividend payments tend to be a very welcomed income in more difficult times, both for regular income or additional savings."

Recent dividend payments by investment trusts managed by JPMorgan Asset Management include The Mercantile Investment Trust, which will pay a third quarterly dividend of 6.00p per share in February 2009. The Directors of JPMorgan Income & Growth Investment Trust plc have also declared a third interim dividend of 1.55 pence per Income share for the year ending 31st January 2009, which will be paid on 19th December 2008 to shareholders.