15th May 2018 18:01
LONDON (Alliance News) - Artemis Alpha Trust PLC said Tuesday has convened a general meeting of the company to consider an ordinary resolution to approve the adoption of the new investment objective and policy for June 7.
At the beginning of April, Artemis Alpha announced as part of a strategic review it is to increase exposure to overseas-listed stocks, while also linking its future dividend policy to inflation.
Artemis Alpha's new investment objective will be to provide "long-term capital and income growth by investing in predominantly listed companies", as well as to achieve a net asset value total return greater than the return of the FTSE All-Share Index.
The previous strategy will to achieve both above average returns and a growing dividend stream.
The majority of its portfolio will be invested in UK-listed firms, but it will increase exposure to overseas-listed firms, and it is aiming to reduce its exposure to unquoted stocks to below 10%, with the figure currently at just below 22%. It would like to achieve this by the time of its annual general meeting in October, but Artemis Alpha thinks this is unlikely to be met.
In terms of its dividend policy, Artemis Alpha has up to now targeted an 10% increase in its payout each year. As a result of aiming to beat the FTSE All-Share's total return, the firm now believes it should link dividend growth to inflation rather than targeting a specific rate.
The aim will be to increase the dividend above inflation as defined by the UK consumer price index.
Artemis Alpha is also planning to make tender offers every three years from 2021 for up to 25% of its share capital each time. The price would be its net asset value per share minus the costs of the tender offer and less a discount of 3%.
Shares in Artemis Alpha closed up slightly at 341.00 pence each.
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