9th Oct 2015 15:35
LONDON (Alliance News) - JPMorgan Global Emerging Markets Income Trust PLC on Friday said it had a particularly tough second half in its last financial year, with a negative 7.8% total return on net assets for the year as a whole.
The MSCI Emerging Markets Index with net dividends reinvested in sterling had a negative return of 6.3% during the trust's financial year ended July 31.
"The facts don't make great reading but they are simple," Chairman Andrew Hutton said in a statement, listing them as follows:
1. The currencies of these developing economies have depreciated relative to sterling.
2. Emerging equity markets have fallen.
3. Investment performance has lagged the benchmark index.
4. The share price has moved from a premium to the cum income net asset value of [positive] 2.3% at 31st July 2014 to a discount of [negative] 4.9% at 31st July 2015
"The board believes that the long term outlook for global emerging markets is favourable, despite the current headwinds," the chairman said.
Shares in the trust were up 2.7% at 94.00 pence on Friday afternoon, and are down just shy of 20% in the year so far.
By Samuel Agini; [email protected]; @samuelagini
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