REG - Schroder Japan Trust - Enhanced Dividend and Discount Management Policy

Schroder Japan TrustAnnouncement

24/06/2024 07:00

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RNS Number : 4624T  Schroder Japan Trust PLC  24 June 2024

Schroder Japan Trust plc

 

Enhanced Dividend and Discount Management Policy

 

Monday, 24 June 2024

 

The Board of Schroder Japan Trust plc (the "Company") announces a package of
dividend and discount management measures following an internal review and
after discussion with the Company's largest shareholders.

 

Enhanced Dividend Policy

 

The Board believes that when investing in Japan, dividends will continue to
play an increasingly important part of shareholder return. Several years ago,
the Board highlighted the growing contribution from the dividends paid, given
the focus of Japanese corporates on improving shareholder value and good
corporate governance practice.

 

Whilst the Company has been able to grow dividends by 12.7% on an average
yearly basis over the past 10 years, the Board would now like to adopt an
enhanced dividend policy to pay out 4% of average net asset value in each
financial year. Further details will be provided in the Annual Report.

 

It is important to note that the enhanced dividend policy will not result in a
change to the Company's investment approach and strategy.  The Company's
focus will continue to be on well -managed, high-quality companies where the
current share price does not yet fully reflect their potential, across the
complete spectrum of Japanese companies.

 

 

Discount Management Policy

 

In August 2020, the Company put in place a Conditional Tender Offer mechanism,
since that time the Portfolio Manager has meet the requirements and has
delivered sustained outperformance relative to the Benchmark, such
outperformance compounding at 4.67% per annum to 31(st) May
2024. Accordingly, it is expected that the Company will meet the
outperformance target, with the result that no tender offer will be
triggered on 31 July 2024.

 

The Board now proposes a new Conditional Tender Offer mechanism. In the event
that the manager does not deliver performance at least in line with the Tokyo
Stock Price Index Total Return in sterling terms (the "Benchmark") over a
five-year period starting from 31(st) July 2024, then the Board will put to
shareholders a proposal for a tender offer of 25% of the issued share capital
at a price equal to the prevailing net asset value less costs.

 

In addition to the above proposal, the Company will continue to maintain its
share buyback policy where appropriate.

 

The Board believes that the measures outlined above will improve the
attractiveness of an investment in the Company.

 

The Chairman Dr Philip Kay said: "The Company has achieved sustained
outperformance over the last four years and my fellow directors and I believe
that an annual 4% of NAV dividend and the new five-year Conditional Tender
Offer is a great package for all our investors".

 

 

Enquiries

 

Company Secretary

 

Katherine
Fyfe
+44 20 7658 3136

 

 

Public Relations

 

Kirsty Preston
 
+44 20 7658 1961

 

 

Corporate Broker

 

J.P. Morgan Cazenove
 +44 20 3493 8000

 

William Simmonds

Jérémie Birnbaum

 

 

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