20th Jan 2020 15:29
(Alliance News) - JPMorgan Russian Securities PLC on Monday upped its annual dividend and reported net asset value rise, despite Russia's stunted economic growth.
In the year to October 31, its net assets rose by 19% year-on-year to GBP360.3 million from GBP303.2 million. Net asset value per share climbed 26% higher to 780.80 pence from 617.60 pence last year.
JPMorgan Russian was trading 1.1% higher at 800.50 pence each in London on Monday afternoon.
Total return on its net assets came in at 32%, RTS Index benchmark which rose by 33%. Total return to shareholders beat the benchmark however, coming in at 45%, JPMorgan Russian said.
The trust explained: "The outperformance was attributable to the significant narrowing of the discount at which the company's shares trade relative to its net asset value."
The company raised its full-year dividend by 35% to 35.0p per share from 26.0p last year.
The trust said: "The Russian economy grew although at a slower rate than the previous year and oil prices, which are a key factor in the performance of the Russian economy, were lower than the previous year. Consumer demand remained subdued and stocks reliant on the domestic market performed less well than exporters."
Brent oil prices, which JPMorgan Russian said is "pivotal" to Russia's economy, averaged USD56 a barrel during the period, down 14% from USD65 a barrel from the same period last year.
By Eric Cunha; [email protected]
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