25th Sep 2019 12:09
(Alliance News) - JPMorgan Mid Cap Investment Trust PLC on Wednesday said it underperformed its benchmark in the year ended June 30 following a year of "significant market volatility".
At June 30, the trust's net asset value per share stood at 1,199.90 pence each compared to 1,319.20p at the same point a year earlier, which represents a 9.0% decline.
The mid cap investor's net assets slipped 9.4% in the period to GBP284.6 million from GBP314.1 million the year before.
JPMorgan Mid Cap proposed a final dividend of 21.5p, giving a total dividend of 29.5p - 5.4% higher than the 28.0p distributed the year before.
In the 12 month period, the trust's NAV total return was negative 6.8%, underperforming the FTSE 250, excluding investment trusts, which lost 5.9% over the same period. Including investment trusts, the FTSE 250 lost 3.8%.
Chair Michael Hughes said: "The market backdrop that I have been reporting on in recent years frustratingly continues. The company is still impacted by the ongoing uncertainties surrounding the UK's exit from the EU, which continues to keep investors wary of investing in UK equities. The rhetoric now coming from the new leader of the government that the UK's future, in whatever shape that may take, will be determined by October 31 has led to heightened uncertainty."
The trust's investment managers Georgina Brittain and Katen Patel added: "Your company continued to benefit strongly from a number of the long-term winners in the portfolio. These included Games Workshop, Intermediate Capital Group, JD Sports and Marshalls. On the negative side, relative performance was hit by bids for two companies that we did not own, BTG and Jardine Lloyd Thompson. In addition, both Sophos and Plus500 were the key detractors to performance, and have subsequently been sold.
"There have been notably fewer new companies coming to the stock market, and the quality of some of them has been questionable. We avoided a number of the disappointing new offerings. Two recent IPOs that we have added to the portfolio are Trainline and Network International. Other additions to the portfolio over the year included Ashmore, Future, Dunelm Group, Greene King and EI Group."
The investment managers said Brexit has dominated their thinking for the last three years, as the FTSE 250 remains domestically-oriented.
"Brexit is currently creating a hiatus in business activity. This, combined with the slowdown in global growth seen this year, makes for a very difficult backdrop for companies to operate in," the managers said.
Hughes added: "Although the current investment climate appears challenging and perhaps confusing, the steady management of a portfolio of companies which have sound financial credentials and good long term growth prospects, together with an attractive dividend yield, should provide reassurance to our investors."
Shares in JPMorgan Mid Cap IT were 1.7% lower in London on Wednesday at 1,106.10p each.
By Paul McGowan; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
JMF.L