21st May 2020 12:01
(Alliance News) - JPMorgan Japanese Investment Trust PLC on Thursday said it outperformed its benchmark index in the first six months of financial 2020 on increased average returns from investments and a rise in the value of the portfolio.
The Japan-focused investment trust said the six-month period to March 31 can be considered as two separate periods of time due to the Covid-19 pandemic.
In the three months to December 31, total return on net assets was 2.4% compared with a 0.4% total return from the company's benchmark index return, the Tokyo Stock Exchange First Section index in sterling terms, an outperformance of 2.0%.
Following the virus spread at the start of 2020 and the resulting stock market fall-out from the government imposed lockdowns, the total return on net assets for the three months to March 31 was negative 10.5%, compared to a negative 11.4% for the benchmark index, also an outperformance, of 0.9%.
Overall, for the six months to March-end, the trust recorded a negative return of 8.3%, an outperformance compared to the negative 11.0% return from benchmark.
As at March 31, investments generated an average return on equity of almost 15% compared to the benchmark return on equity of close to 9%, the trust said, adding that the portfolio valuation, as measured by the price-earnings ratio, was also higher than the market average.
"Japanese companies look relatively well positioned to weather this economic storm as more than 50% of non-financial companies have net cash positions. This compares to 23% in Europe and 15% in the United States, as at 3rd April 2020. The companies we invest in have strong structural growth outlooks, competitive positions and balance sheets and we believe they will perform well in the long-term regardless of the twists and turns in the wider global economy," JPMorgan Japanese said.
The company's net asset value at period end amounted to 459.9 pence per share, up from 455.6p a year ago.
JPMorgan Japanese, in line with previous financial periods, has decided against declaring an interim dividend. For the year ended September 30, 2019, the trust paid a dividend of 5.00p per share.
Shares in the company were down 0.2% at 478.85 pence each in London on Thursday.
By Tapan Panchal; [email protected]
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