JP Morgan Asset Management has announced proposals to change the dividend targets of its overseas investment trust to at least 4 per cent, more than double what it currently pays.
The £306.3m trust, managed by Jeroen Huysinga, currently has a dividend yield of 1.5 per cent.
The dividend policy, to be put to shareholders, would be effective from 1 July and equal interim dividend payments would be made in October, January, April and July.
It would also be renamed the JP Morgan Global Growth & Income and will maintain its investment policy.
Chairman Nigel Wightman says: “Investors are increasingly seeking a reliable level of income alongside capital growth and this demand for income generating investments has become firmly entrenched.
“The proposed changes to the company’s dividend distribution policy will widen the appeal of the vehicle, providing a yield that is expected to be in line with the global income sector and should help to narrow the discount.”
Wightman says investment conditions “have evolved” since the trust was founded in 1887.