J.P. Morgan Income and Capital maintains dividend in adverse market conditions
London, 19th July 2010 - The J.P. Morgan 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.
* On average, fast growing, cheap stocks with good news flow will outperform slow growing, expensive stocks with poor news flow
Top 10 holdings as at 30 June 2010
HSBC
Royal Dutch Shell
Vodafone
GlaxoSmithKline
BHP Billiton
JPMorgan Corporate Bond Fund
AstraZeneca
BP (still offering value)
British American Tobacco
Rio Tinto
Notes
Company website: www.jpmincomeandcapital.co.uk
J.P. Morgan Income and Capital Investment Trust can be bought on J.P. Morgan WealthManager+
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For further information please contact:
Jayne Fieldhouse: Media Relations
Telephone: 020 7742 8337
Email: jayne.e.fieldhouse@jpmorgan.com
Lansons Communications
Caroline Macleod-Smith
Telephone: 020 7566 9702
Email: carolinems@lansons.com
Notes to Editors
About J.P. Morgan Asset Management
J.P. Morgan Asset Management is part of J.P. Morgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With US$1.2 trillion in assets under management (the Asset Management client funds of J.P. Morgan Chase & Co. as at June 30th 2010) and offices in 41 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
J.P. Morgan Asset Management is a trading name of J.P. Morgan Asset Management Marketing Limited which has issued this material in the United Kingdom and which is authorised and regulated by the Financial Services Authority. Registered in England No. 288553. Registered office: 125 London Wall, London EC2Y 5AJ.
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