10th Oct 2019 11:50
(Alliance News) -JPMorgan Multi-Asset Trust PLC on Thursday said it beat its reference index and recorded a rise in first half net assets despite market volatility.
At August 31, the trust's net asset value stood at GBP90.7 million, up 3.7% from GBP87.4 million at the end of February. Net asset value per share rose by 3.9% to 105.30 pence from 101.30p
The stock was trading 0.2% higher at 98.12 pence each in London on Thursday morning.
JPMorgan Multi-Asset reported a 6.0% total return during the period, outperforming reference index by 3.3%.
The trust said: "The company's reference index, comprising the LIBOR one-month sterling rate plus 4.5% per annum, is used instead of a benchmark, since it is considered more closely to reflect the profile of the company's portfolio."
So far, the company has declared dividends totalling 2.0 pence per share, flat year-on-year.
JPMorgan Multi-Asset invests in stocks across a range of sectors and has interests in companies like Italian utility firm Enel SpA, consumer products maker Nestle SA and French telecommunications stalwart Orange SA.
It has however reduced its exposure to firms in the healthcare industry, attributed to regulatory changes in the US.
The trust said: "Macroeconomic uncertainty has continued to be a significant feature, leading to bouts of market volatility across all asset classes. Trade tensions between the US and China have been a significant factor, leading to declining business confidence, as illustrated by deteriorating manufacturing purchasing managers' indices."
Looking ahead, although the company does not predict a near-term recession, it acknowledges that possibility of one occurring has increased.
Chair Laurence Magnus explained: "Your investment managers believe that the global economy is in the latter stage of the economic cycle and that the possibility of a recession has somewhat increased. The investment environment has become more uncertain, with market sentiment appearing to be highly dependent upon the readiness of Central Banks to soften monetary conditions."
By Eric Cunha; [email protected]
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