24th Nov 2022 15:36
(Alliance News) - JPMorgan Japan Small Cap Growth & Income PLC on Thursday lowered its dividends as its net asset value per share declined in the first half of its financial year.
London-based JPMorgan Japan Small is an investment company focused on Japanese small caps.
JPMorgan Japan Small reported its NAV per share declined 38% to 355.70 pence in the six months to September 30, down from 577.80p the year before, and net assets decreased 38% to GBP193,880 from GBP314,939.
Following the decline, JPMorgan Japan Small declared two dividends of 3.4p and 3.6p for the quarters that ended June 30 and September 30, respectively, down 36% from 11p per share the prior year.
JPMorgan Japan Small Cap said it underperformed its benchmark over period. The total return on its net assets was negative 8.7%, compared to a total return benchmark of negative 0.2%, according to the MSCI Japan Small Cap Index. This index measures the performance of the small cap segment of the Japanese market.
However, the company said its performance improved in the last three months of the period, delivering a return of 5.4% in NAV terms and outperforming the benchmark by 1.6%.
JPMorgan Japan Small Cap said growth stocks have been under sustained selling pressure in all major markets since the beginning of 2022, following Russia's invasion of Ukraine intensifying investors' fears around rising inflation and monetary tightening.
Interest rate hikes by the US Federal Reserve, the Bank of England and the European Central Bank took a toll on stocks across the market, and Japanese growth stocks were "not immune" despite subdued inflation in the country.
"We believe our investment approach is capable of weathering this volatility and any short-term shifts in sentiment driven by economic roadblocks or geopolitical developments, just as it has done in the past. This leaves us confident that the company will deliver positive returns and relative outperformance to patient investors over the longer term," Chair Alexa Henderson said.
JPMorgan Japan Small Cap shares were down 0.1% to 345.59p on Thursday afternoon in London.
By Jaskeet Briah; [email protected]
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