14th Jul 2015 16:06
LONDON (Alliance News) - JPMorgan Brazil Investment Trust PLC Tuesday said it underperformed its benchmark, the MSCI Brazil 10/40 Index, in the year to end-April.
The trust posted a negative return on net assets of 14.6%, underperforming its benchmark which saw a negative return of 9.5%.
It attributed the decline in the value of its shares to the devaluation of the Brazilian real, and its under performance to a number of stock selection decisions in markets "which have been highly volatile because of political and economic factors."
The trust recommended a dividend of 0.40 pence, down from the 0.85 pence it paid in the previous year.
"We believe we are nearing rock bottom, and that confidence could pick up later in the year. In the short term, we expect unemployment to continue to rise, with a knock-on effect on consumption. Importantly, though, rising unemployment is in part driven by rising participation in the workforce - a sign of improving sentiment," JPMorgan Brazil Investment Trust said in a statement.
Shares in JPMorgan Brazil Investment Trust closed down 0.5% at 52.50 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
JPB.L