3 Apr 2020 07:30
Aberdeen Japan Investment Trust PLC ('AJIT' or the 'Company')
LEI: 5493007LN4380BLNLM64
3 April 2020
Discount monitoring
The Company's Articles require the Board to monitor the discount at which the Ordinary shares have been trading in relation to the NAV (exclusive of income) in the ninety day period prior to the Company's financial year end, being the three months prior to 31 March in any year. If the Ordinary shares have been trading, on average, at a discount to NAV in excess of ten per cent within that ninety day period, then a continuation vote is required to be proposed to shareholders. Over the ninety day period just ended the average discount has exceeded the ten per cent figure, albeit by a small amount.
Accordingly, the Board, after engaging with shareholders, will put the continuation vote to a general meeting of the Company as required by the Articles.
This is the first time since the inception of the discount control mechanism that the Company has been required to propose a continuation resolution. Unprecedented volatility has been witnessed in global equity markets since COVID-19 was recognised in March as a global pandemic. Fears of a global recession have led to heavy selling of assets and a lack of liquidity in security markets. In consequence, most investment trusts have traded at wide discounts throughout March, including AJIT. By contrast the months of January and February, prior to the breaking of the crisis, witnessed an average discount to NAV well below ten per cent, with only eight days when ten per cent was exceeded.
The Board, as advised by the Manager, remains confident in the quality of the underlying portfolio held by the Company, despite the current uncertainty. Japanese companies have maintained strong balance sheets and have endured similar disruptions in the past with policymakers standing ready to support businesses through this period of uncertainty.
For Aberdeen Japan Investment Trust PLC
Aberdeen Asset Management PLC, Secretary