Board of JPM Overseas trust proposes 4% income target

To widen appeal to income starved investors

The board of the £270m JP Morgan Overseas investment trust has proposed a number of changes to the company, including a new name and AIC sector and a target dividend of at least 4% of NAV.

The proposal is for the trust to change AIC sector from Global Growth to Global Equity Income and adopt a new target dividend of at least 4% of its NAV each financial year, enhancing the vehicle's income focus. The policy will see target dividends announced at the start of each financial year to provide clarity and paid by way of four equal interim dividends in October, January, April and July each year. The group said the proposal was made to "widen the appeal of the vehicle" as investors continue to gravitate towards higher yielding investments as a result of the low interest rate e...