21st Dec 2015 14:29
LONDON (Alliance News) - JPMorgan Chinese Investment Trust PLC on Monday said the small outperformance of its benchmark in its last financial year was due to "careful" stock selection.
The trust's total return on net assets, which comprises the change in net asset value with the dividends received reinvested, amounted to 0.2% in the year ended September 30.
By comparison, the return of the trust's benchmark, the MSCI Golden Dragon Index, was flat over the same period.
However, the return to ordinary shareholders, including the final dividend of 1.60 pence paid in February, was negative 7.0%.
The trust plans to change its benchmark index, which provides an important yardstick to allow investors to measure performance.
"At the time of the company's launch in 1993, the MSCI Golden Dragon Index offered the best comparator of the investment opportunity. However, as the investment opportunities in mainland China have increased in recent years, the board and the manager now consider that the MSCI China Index provides a better reflection of the investment opportunity," Chairman William Knight said.
Linked to that, and together with an "increase in investment opportunities" in mainland China, the trust wants to allow greater allocation to China A-Shares amid broader changes to its investment policy.
"However, the manager continues to find quality investments in Taiwan and Hong Kong which will also give exposure to the wider China economy and therefore the proposed investment policy will continue to allow for investment in Taiwan and Hong Kong listed companies. These changes reflect an evolution of the market and the changing access to mainland Chinese companies that has occurred since the launch of the company," Knight said.
Shares in the trust were up 0.8% at 169.27 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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