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 31st
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 31st 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