6th Mar 2019 09:32
LONDON (Alliance News) - JPMorgan Emerging Markets Investment Trust PLC said Wednesday its assets fell in the first half but still managed to outperform its benchmark, and it has declared an interim dividend.
At December 31, the investment trust's net asset value per share stood at 935.5 pence, compared to 968.2p at June 30, a 3.4% decrease.
JPMorgan Emerging Markets' net assets decreased 4.2% in the same six month period to GBP1.15 billion from GBP1.20 billion.
During the period, the investment trust bought back 817,015 shares.
JPMorgan Emerging Markets total return was negative 2.0% compared to its benchmark, he MSCI Emerging Markets Index, shedding 5.1%.
The investment trust declared an interim dividend of 5.0p, and now feels it "generates sufficient income" to warrant the payment of an interim dividend each year.
"The last six months have seen conditions, with more volatility and plenty of uncertainty, that are more familiar to investors in emerging markets than the smooth untroubled progress that equities enjoyed a year earlier," said Investment Manager Austin Forey.
"A strong US dollar, economic sanctions imposed on certain countries by the US, and the trade disputes between the US and China. None of these were really resolved during the last six months, and the US-China trade issues in particular continued to bear negatively on share prices. Activity in the portfolio was low, and for the most part we were content to continue holding the same companies; as long as they keep producing decent results while maintaining or growing their competitive strengths, we remain happy to leave them alone."
Forey noted the most notable change was the decline in "many" Chinese stocks, but the valuations were not enough to "produce compelling entry points".
The investment trust said, going forward, China is still the focus of its attention. Forey added: "People often assume that we spend our days looking for more and more new ideas to add to the portfolio; but if our strongest views are already in the portfolio, we are not interested in diversification for the sake of it."
A particular focus will be companies in the consumer sector.
Shares in JPMorgan Emerging Markets were down 0.1% Wednesday morning at 899.34 pence each.
Related Shares:
JPMorgan Emerging Markets Investment Trust