JPMorgan Global Emerging Markets Income Trust hits target
The JPMorgan Global Emerging Markets Income Trust has exceeded its target of paying 4p dividend in its first year. The investment trust has announced a final dividend of 1.45p per Ordinary share, taking the total dividends paid in the first period since launch (July 2010 to 29 July 2011) to 4.7p.
The investment trust, which aims to provide investors with a dividend income combined with the potential for long-term capital growth from investing in a diversified portfolio of emerging markets investments, was launched in response to demand from investors for a new source of equity income.
In addition, the Company has utilised the ability of an investment trust structure to reserve up to 15 percent of earnings with the intention to ensure consistent future dividend levels. In the first year, it has been able to reserve the equivalent of 0.5p per share.
Andrew Hutton, the Chairman of the JPMorgan Global Emerging Markets Income Trust, said, "The investment trust's first year has been both exciting and challenging. In the current low interest-rate environment, being able to offer shareholders a strong income from their investment has been pleasing. This demonstrates that emerging markets are maturing and that alternative sources of income are available. Our confidence in being able to provide a regular income to investors through the form of dividends is shown in the fact we are moving to quarterly dividend payments."
Richard Titherington, Manager of the JPMorgan Global Emerging Markets Income Trust, said, "The income orientation part of the portfolio means there has been greater exposure to companies with strong cash-generating capabilities, which has provided some stability in the portfolio, as witnessed in recent months. In addition, the overall diversification of the portfolio has helped deliver consistent performance and current top 10 positions are spread across nine different markets and six different sectors."
Titherington went on to say, "We believe that the income-generating capabilities of emerging market companies are a long-term feature and our in-house macro model forecasts a 10 percent dividend growth in local currency terms across the portfolio over the coming 12 months."