25th May 2018 13:42
LONDON (Alliance News) - JPMorgan Chinese Investment Trust PLC said on Friday that it has performed ahead of its benchmark in the first half of its financial year, largely through its exposure to China A-shares.
Total return for the six-month period ended March 31 was 10%, far above its 4.8% benchmark. The company said its success was the result of an increase in its China A-share exposure to 26.2% of its portfolio from 18.9% six months earlier.
The trust, which says it invests in "home-grown Chinese companies", recorded a rise in net asset value per share to 339.6 pence from 259.5p the year prior, outperforming the Morgan Stanley Capital International China Index, which is its benchmark.
The company did not declare an interim dividend, but its 2017 final dividend was kept flat at 1.6p per share. Total return per share was significantly higher at 31.35p from 17.79p year on year.
The trust increased its credit facility with Scotiabank to GBP50 million in February and renewed it for another year in April. JPMorgan Chinese had drawn GBP41.3 million from this facility as of March 31.
In June, China A-shares will be included will be included in the MSCI Indices, which the company sees as "a key step in the overall liberalization process of China's capital markets", and the trust expects this to increase participation from foreign investors and "diversify the investment landscape".
In reference to recent trade issues between China and the US, the company said that "less dependence on export growth" by China is expected to minimise any escalation in tensions.
"We continue to have confidence that the investment team, supported by the well resourced research team, continues to find interesting companies that will benefit from the growth in the Chinese domestic market," said JPMorgan Chinese Chairman John Misselbrook.
Shares in the company were down 0.5% at 309.57 pence on Friday afternoon.
Related Shares:
JPMorgan Chinese