CLEVELAND, Feb. 19, 2016 /PRNewswire/ -- Ancora Advisors LLC ("Ancora"), a 4.6% shareholder of JPMorgan China Region Fund, Inc. ("fund" or "JFC"), is encouraging stockholders of JFC to express their dissatisfaction with the long-term double digit discount the fund trades at relative to net asset value ("NAV"). As set forth in an open letter that was filed with the SEC today, Ancora believes JFC should be either merged with an open-ended fund or liquidated. Please find below a summary of key points and link to the full text of the letter.
JFC has persistently traded at a double digit discount to NAV, including six consecutive years of an average discount in excess of -10% (and eight of the past ten years). In fact, over a 1, 3, 5, and 10 year period, JFC's average discount to NAV is the worst of its closed-end fund China/Asia peers. It is likely that had Ancora not been accumulating a significant amount of the volume over the past couple of months, JFC's YTD discount would be much worse. When evaluating whether the Fund has effectively addressed the discount, we do not see effort that has been exerted to narrow the discount, as evidenced by the high discount that has persisted for many years. JFC pays a modest dividend, the adviser has an open buyback authorization but has not to our knowledge repurchased shares, and there does not appear to have been a single self-tender conducted for at least a decade (maybe longer).
We believe the options for JPMorgan China Region Fund's board of directors are clear, either merge the Fund with JCHAX or liquidate the Fund at (or close to) NAV.
We have notified the Fund's board of directors that Ancora intends to seek board representation should it prove necessary in order to maximize stockholder value. We encourage all of the Fund's stockholders to send a resounding message to JFC and the board that their lack of taking material measures to close the Fund's discount is simply unacceptable.
Ancora has sent the Board of Directors of JPMorgan China Region Fund, Inc. a notice of intent to nominate directors and submit a non-binding proposal requesting that the fund's board of directors authorize a self-tender for all the fund's shares outstanding.
Ancora Advisors LLC is a registered investment adviser with the Securities and Exchange Commission of the United States. Ancora offers comprehensive investment solutions for institutions and individuals in the areas of fixed income, equities, global asset allocation, alternative investments and retirement plans. A more detailed description of the company, its management and practices are contained in its "Firm Brochure" (Form ADV, Part 2A). A copy of this form may be received by contacting the company at: 6060 Parkland Boulevard, Suite 200 Cleveland, Ohio 44124, Phone: 216-825-4000, or by visiting the website, www.ancora.net/adv