Unlocking Value

Earlier, we wrote that many reputable listed closed-end funds implement “discount management programs”.

Like Fidelity, JPMorgan also proactively manages the discount of its closed-end funds.

JPMorgan Asia Growth & Income plc (“JPM Fund“) is a UK-listed closed-end fund that focuses on Asian equities. China (including Hong Kong) accounts for one third of its portfolio.

It has an explicit discount management program:

In normal market circumstances [JPM Fund] will use its buyback powers in order to ensure that, as far as possible, its ordinary shares trade at a discount no wider than 8% to 10% relative to their cum-income Net Asset Value per share.

The following table shows how JPM Fund has implemented the program. In the past five years, it has bought back only ~7% outstanding shares:

Year	The highest discount at which JPM Fund shares traded during the year	Number of shares bought back during the year (as % of shares outstanding)	JPM Fund’s discount/(premium) at year end
2023	11.4%	5.9%	9.2%
2022	12.3%	1.0%	9.6%
2021	8.3%	0.1%	8.3%
2020	10.0%	None	(0.6%)
2019	12.0%	None	10.0%

It really works. Over the past five years, JPM Fund has traded at less than 10% discount to NAV almost all the time:

We, Argyle Street Management, believe that China Merchants China Direct Investments (CMCDI, 133 HK) should implement a discount management program.

Chat with us on WeChat or Whatsapp:

💬 WeChat ID: ASM_Argyle

💬 WhatsApp ID: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com

---

早前，我们写到很多著名上市封闭式基金都推行了“折价管理计划”（discount management programs）。

正如富达基金一样，摩根大通也在积极管理其封闭式基金的交易折价。

JPMorgan China Growth & Income plc（摩根大通中国基金）(摩根大通基金) 是一个在英国上市的封闭式基金，专注于亚州的股票投资。中国（包括香港）占其总持仓的1/3。

摩根大通基金的 折价管理计划 表示：

在正常市场情况下，[摩根大通基金]将通过回购，以尽可能确保其普通股相对于其[每股净资产价值]的折价不超过8%至10%。

以下表格展示了摩根大通基金折价管理计划的执行情况。在过去五年中摩根大通基金累计仅回购了7%的已发行股份。

年份	在年内交易的最高折价水平	年内回购的股份数量 （占已发行股份的百分比）	年末的折价/溢价
2023	11.4%	5.9%	9.2%
2022	12.3%	1.0%	9.6%
2021	8.3%	0.1%	8.3%
2020	10.0%	不涉及	(0.6%)
2019	12.0%	不涉及	10.0%

它确实有效。在过去五年中，摩根大通基金的交易价格几乎一直低于资产净值的10%。

我们Argyle Street Management认为招商局中国基金（中国基金，133 HK）应该也实施一项折价管理计划。

欢迎随时跟我们沟通。

💬 微信: ASM_Argyle

💬 WhatsApp: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com