5th Oct 2016 07:09
LONDON (Alliance News) - JPMorgan Emerging Markets Investment Trust PLC on Wednesday said it significantly outperformed its benchmark in the year to the end of June, boosted by currency benefits following sterling's fall in the wake of the UK's EU referendum.
The trust, which invests in emerging markets equities, said it made a total return on net assets of 12.7% in the year to the end of June, compared to a 3.5% return for its benchmark, the MSCI Emerging Markets Index.
Investment Manager Austin Forey said with a week to go until the trust's financial year-end, he had been preparing to "write a report explaining why emerging markets had been a tough place to be invested, for anyone who measures returns in sterling."
But the collapse in the value of sterling following the UK's vote to leave the European Union meant all foreign assets suddenly became more valuable, which drove the fund's outperformance.
Forey said the first six months of the financial year had been marked by "ever-increasing gloom about the prospects for emerging markets", but this turn in the second half and emerging markets grew substantially in the six months to the end of June.
The manager said the trust continues to have a big exposure to consumer stocks but said it remains cognisant of the challenges posed to the traditional retail sector by online. As a result, he expects its consumer exposure will shift to be slanted towards products rather than services in the future.
Shares in the trust were up 1.4% at 721.00 pence early Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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JPMorgan Emerging Markets Investment Trust