26th Feb 2015 14:29
LONDON (Alliance News) - JPMorgan Emerging Markets Investment Trust PLC Thursday said that equities in emerging markets offer "reasonable" value against those in developed markets, giving it cause to anticipate outperformance.
The trust's outlook on emerging market equities came within a report for the first six months of its financial year.
"Emerging markets equities appear to be reasonably value compared with developed markets and a period of outperformance is due, but there are variations across markets and, as ever, our long term performance will be driven by our investment manager's stock picking ability," Chairman Alan Saunders said in a statement.
The trust is managed by JP Morgan Asset Management's Austin Forey.
According to the trust, the MSCI Emerging Markets Index (in sterling terms) returned 1.1% in the six months to the end of December 2014, while the trust produced a total return on net assets of 5.7%.
Over the same period, the return to shareholders was 8% the trust said, with the discount on its shares narrowing to 8.9% from 10.8%.
The trust reiterated that it is prepared to take action to prevent the discount from exceeding 10% over "an extended period", but only if the discount is out of line with that of peers. The trust also said market conditions would have to be suitable.
We are prepared to buy shares in at discounts wider than 8% in order to achieve this, subject to those caveats," Saunders said.
The trust's shares were down 0.4% at 611.30 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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JPMorgan Emerging Markets Investment Trust