Higher dividends and lower fees from Jupiter Green – The annual report for Jupiter Green Investment Trust PLC (JGC) has been released for the year to 31 March 2018.
Performance
Every year, shareholders of Jupiter Green can subscribe for one new ordinary shares for every ten shares they already own. As a result, the performance of the NAV of the company is quoted on the basis that all shareholders might do this. Therefore, taking into consideration the dilutive effect that this would have, the total return of the NAV was 5.8%. This compares with an increase in the company’s benchmark index, the MSCI World Small Cap Net total return index of 3.6% and total return on the middle market price of the company’s shares of 7.3% during the same period.
The discount to NAV per share was 2.51%. at the end of the year, compared to 5.74% on 31 March 2017. As at 31 May 2018 the price stood at a discount of 5.53%.
Dividend policy
There is a realisation amongst many boards that many more shareholders are seeking income from their investments and are changing their dividend policies accordingly. By making holding shares more attractive, it can contribute to reducing a discount to NAV. The board of Jupiter Green will propose to shareholders to move from paying the minimum dividend to paying a higher, semi-annual dividend. It is anticipated that it would equate to approximately twice the level of the divided payable in relation to the current financial year and which it is hoped could be increased progressively over future years. The final dividend was declared to be 1.30p per share (2017: 1.20p)
Reduction in running costs
The company and the investment manager have agreed to remove the existing performance fee arrangements with retrospective effect from the beginning of the current financial year.
The management fee is to be reduced with effect from 1 June 2018, as follows:
Current – 0.75% of NAV per annum
Future –
- 0.70. of NAV up to £150m,
- 0.60% of NAV over £150m up to £250m
- 0.50 of NAV in excess of £25om
JGC : Higher dividends and lower fees from Jupiter Green