Martin Currie Asia Unconstrained says that the differentiated investment approach, adopted in August 2014, has translated into much improved recent performance but this has not been reflected in a narrowing of its discount.
Following feedback from shareholders, the board is initiating a policy of increasing the yield on the shares by introducing a distribution from capital to the dividend, subject to shareholder approval at the AGM in July 2017.
The board proposes that the first payment from capital will be made as part of the final dividend paid in August 2017 for the year ended 31 March 2017 and that this payment will be set at a level of 2% of the company’s ex-income NAV at the year-end of 31 March 2017. This will increase the headline dividend yield on the shares, for the full year to 31 March 2017, to approximately 4.5% based on the share price at the close on 31 March 2017.
It is the 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 NAV. There will be no change to the Company’s Investment Policy.
MCP : Martin Currie Asia to pay dividends from capital