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JPMorgan American Investment Trust raises payout despite NAV fall

31st Mar 2023 11:53

(Alliance News) - JPMorgan American Investment Trust PLC reported a lower net asset value for 2022, citing interest rate increases and high inflation, while anticipating an end to rising interest rates.

The fund is managed by JP Morgan Asset Management and is an active investor in "the core US stock market".

JPMorgan American said net asset value per share at December 31 declined 11% to 690.3 pence from 771.9p a year ago. NAV total return was negative 8.7%, underperforming against its benchmark, the S&P 500, which contracted by 8.0%.

The company declared a final dividend of 4.75p per share, up from 4.50p a year ago. This brings the total 2022 dividend to 7.25p, up 3.6% from 7.0p for 2021.

Looking ahead, JPMorgan American anticipates an end to rising interest rates. Chair Kevin Carter says: "There is also mounting evidence that US inflation has peaked and is now on a downward trend. Together these suggest that the worst effect on the US stock market of these twin concerns has likely passed. This does not eliminate the risk of further volatility in the market as concerns about the lagged effects on company earnings come into investors' focus.

"The end of the era of low-cost money that has obtained until recently, dating from the global financial crisis of 2007-2008 was bound to have many consequences. The recent collapse of Silicon Valley Bank and stresses in other regional US banks is one such, and the US Federal Reserve will now need to have a heightened focus on financial stability as it pursues its inflation fight."

JPMorgan American Investment Trust shares were 0.3% higher at 702.33 pence each in London around midday Friday.

By Tom Budszus, Alliance News reporter

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