15th Aug 2024 09:57
(Alliance News) - JPMorgan American Investment Trust PLC on Thursday said it outperformed its benchmark in the first half due to its exposure to large-cap US stocks.
The trust, which is managed my JP Morgan Asset Management, invests in both US value and growth stocks.
Net asset value on June 30 was 1,014.2 pence per share, up 18% from 856.5p at December 31.
JPMorgan American raised its interim dividend by 10% to 2.75p from 2.50p per share.
NAV total return in the first six months of 2024 stood at 19%, outperforming the benchmark S&P 500 Index which returned 16% over the same period.
The trust attributed this outperformance to its portfolio weighting towards large-cap holdings, particularly in the IT sector, which accounted for 94% of assets. This included an overweight position in Wall Street's favourite AI play Nvidia Corp.
Chair Robert Talbut said: "The first six months of 2024 remained positive for the US market. Despite some continuing economic and political uncertainty, US equities extended their streak of new all-time highs, buoyed by hopes of a soft economic landing, a favourable prognosis for corporate earnings and further gains in the handful of stocks expected to benefit most from the rapid adoption of artificial intelligence tools."
JPMorgan American also is invested in Facebook-owner Meta Platforms Inc.
Looking ahead, the trust maintains a positive outlook for US equities in the near-term and beyond. However, JPMorgan American expects the upcoming US presidential election to "spark some market jitters" as a result of uncertainty surrounding the winners political priorities and their stance on various geopolitical situations.
"But the economy appears to be on a sound footing and should benefit from interest rate cuts later this year and next...The company's long-term performance track record attests to the manager's skill at negotiating the unusual, challenging and varied market conditions that have confronted investors in recent years," JPMorgan AIT added.
JPMorgan American shares were up 0.3% to 992.29 pence each in London on Thursday morning.
By Elijah Dale, Alliance News reporter
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