2nd Oct 2014 12:05
LONDON (Alliance News) - JPMorgan Emerging Markets Investment Trust PLC Thursday said the value of its portfolio after fees and expenses fell by 3.5% in its last financial year.
In a statement, the trust said it underperformed its benchmark, the MSCI Emerging Markets Index, which gained 1.4% in sterling terms.
The underperformance gave rise to a negative performance fee accrual of GBP3.6 million, which will be carried forward and has to be offset against any future outperformance before any performance fee becomes payable. This means that the investment manager of the trust must overcome this underperformance before the trust begins to pay a performance fee again.
"Whilst it is disappointing to report underperformance for the latest financial year, the board judges performance over the long term and this was only the second year in the last ten financial years that our investment manager significantly underperformed the benchmark," Chairman Alan Saunders said in a statement.
The chairman said emerging markets have had a troubled time but that the situation seems to have stabilised.
"On a valuation basis, they are generally regarded as looking attractive despite the risks compared to developed markets. We are not out of the woods yet with regard to volatility in emerging markets but we appear to be moving in the right direction," Saunders said.
The trust is managed by JP Morgan Asset Management's Austin Forey.
By Samuel Agini; [email protected]; @samuelagini
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