JPMorgan Income and Capital maintains dividend

The JPMorgan Income and Capital Investment Trust has announced it intends to maintain its dividend payments on its ordinary shares.

Following the Company's Annual General Meeting, the Chairman of the Company, Sir Laurence Magnus Bt, made the following statement, "Having reviewed its revenue forecast for the remainder of the financial year ending 28 February 2011, and after taking account of the suspension of dividend payments by BP plc, the Board confirms its intention, in the absence of further unforeseen circumstances, to maintain dividend payments on its ordinary shares to provide ordinary shareholders with a total dividend for the year of 5 pence per ordinary share.  The Board will, if necessary, draw upon reserves attributable to ordinary shareholders in order to ensure payment of these dividends in the event that they are marginally uncovered by revenue received during the year."

In addition to this, the Investment Trust's managers Sarah Emly and John Baker say that although volatility has returned to the markets in the last two months, they expect that their bottom up stock picking investment philosophy* will deliver superior returns by focusing on value and momentum, with a yield tilt.

The managers also emphasised that they continue to favour equities over bonds from a valuation perspective and that UK corporate news flow remains positive and earnings forecasts for the market are still rising, even though economic data releases are less positive. They believe that the current valuation of UK equities is attractive with some compelling valuations on offer from companies with good growth potential.