26th Mar 2014 13:56
LONDON (Alliance News) - JPMorgan Global Emerging Markets Income Trust PLC Wednesday said it underperformed its benchmark in the six months to end January, hit by the poor performance of emerging markets during the period.
In a statement, the company said its net assets per share fell 12.0% over the period, compared with a 8.1% decline for the MSCI Emerging Markets Index in sterling terms, with dividends reinvested.
"Emerging markets have performed dismally in comparison to developed markets for over a year. The Investment Managers' report discusses in detail the reasons for this; but it also presents the prospects with a guarded optimism which your board fully shares," the trust said in a statement.
"In spite of the short term outlook for earnings remaining difficult, with the potential knock-on impact for dividends, the long term dividend story for Emerging Markets remains intact, along with the expectation that the growing dividend culture amongst Emerging Markets companies will continue," Investment Manager Richard Titherington said in a statement.
"We recognise that there may continue to be periods of turbulence in these markets in the shorter term but highlight that, on a longer term basis, Emerging Markets look cheap relative to other equity markets," Titherington added.
The trust's shares were up 2.5% at 111.44 pence Thursday afternoon.
By Steve McGrath; [email protected]; @SteveMcGrath1
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