23rd May 2016 13:29
LONDON (Alliance News) - JPMorgan Japanese Investment Trust PLC Monday said it outperformed its benchmark, the TOPIX, in its first half.
For the half year to end-March the trust saw a total return on net asset value of 14.2%, compared to an 8.3% rise from its benchmark.
This means that in the five years to end-March, the trust's total return to shareholders was 73.3% in sterling terms, compared to a rise of 39.9% from the TOPIX.
The trust said its outperformance compared to the benchmark was primarily due to stock selection, it was underweight in financials which were hit by a new negative interest rate policy in Japan, and overweight in services, which was a major positive contributor.
During the half year JPMorgan Japanese Investment Trust added to the chemical sector, and reduced its exposure to electric appliances, where it has become more concerned about the maturity of the smart phone cycle, and in banks, where it is worried about long-term profit outlook.
"The outlook over the next six months for Japanese equities will be largely determined by changes in the US dollar/yen exchange rate as the stock market has recently been exhibiting a more than usually high correlation with exchange rate movements," Chairman Andrew Fleming said.
Shares in JPMorgan Japanese Investment Trust were down 0.6% at 287.28 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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