14th Jun 2024 10:40
(Alliance News) - JPMorgan Emerging Europe, Middle East & Africa Securities PLC on Friday said its portfolio's exposure to Russian equities has limited growth.
The London-based trust said in the six months that ended April 30, net asset value rose 5.6% to 49.4 pence per share from 46.8p year-on-year.
The trust underperformed its benchmark index, returning 6.9% compared to the 9.1% return of the S&P Europe, Middle East & Africa BMI.
Chair Eric Sanderson said: "The tragic events in Ukraine...continue to cast a shadow over the global economy. The strict economic sanctions that followed the invasion remain in place and the valuation of the company's Russian assets continues to be drastically reduced."
According to Sanderson, the trust will remain in a difficult position for the foreseeable future as the conflict continues and the trust maintains a mixed economic outlook for the EMEA region and the related index.
"We are positive on the earnings outlook for 2024, but less so than consensus. We expect earnings per share to be 5-10% higher than the base results for 2023... but more cautious than the consensus forecast of 18% EPS growth.
"We expect banks to lead the way, as net interest margins remain elevated. The portfolio's exposure to financials will continue to benefit accordingly." the trust said.
JPMorgan Emerging EMEA shares were up 2.2% to 110.40 pence each in London on Friday morning.
By Elijah Dale, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.