23rd Sep 2016 12:01
LONDON (Alliance News) - JPMorgan Mid Cap Investment Trust PLC on Friday said it lagged its benchmark in its financial year to the end of June, hit hard by the drop in shares of UK-focused companies following the UK's vote to leave the European Union.
The trust, which invests in FTSE 250 stocks, said its net asset value total return was negative 7.7% in the year to June 30, lagging the 5.7% decline for its benchmark, the FTSE 250 excluding investment trusts.
The fund declared a final dividend of 13.0 pence, taking its total payout up to 21.0p from 20.0p a year prior.
"Had the company's year end fallen on June 23, 2016, it would have been an entirely different picture," said Chairman Andrew Barker. However, after the UK voted to leave the EU on that day, the FTSE 250 index dropped 15% in only five business days, the trust noted.
The trust's managers had worked hard to position the portfolio to ensure it was prepared for either a Remain or Leave vote, but ultimately its performance still lagged the FTSE 250.
Ahead of the vote, the managers of the fund decreased real estate holdings, selling out of property services firm Savills PLC and London-focused property developers Capital & Counties PLC and Derwent London PLC.
It increased its exposure to sports clothing retailer JD Sports Fashion PLC, but cut positions on electricals and mobile phones retailer Dixons Carphone PLC and in budget airline easyJet PLC. It also added to its overseas exposure with holdings in electronics distributor Electrocomponents PLC and added to its position in BGEO Group PLC, the owner of Bank of Georgia.
"Stock markets in any region experience increased levels of volatility in uncertain climates, and unfortunately for the companies within our investment universe, uncertainty will be a factor for the foreseeable future whilst the government negotiates the UK out of the European Union," said Barker.
"Despite this the board is confident that it has in place a strong and experienced team to steer the portfolio through these challenging times," the chairman added.
Shares in the fund were down 0.1% at 956.82p Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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