5th Feb 2014 16:09
LONDON (Alliance News) - JPMorgan Russian Securities PLC Wednesday said its net asset value total return increased substantially for the financial year ended October 31, at a rate almost double its benchmark.
The investment trust reported net asset value total return of almost 14% for the year, compared with its benchmark which rose 7.1%. It said the biggest contributor to outperformance during the year was sector allocation, in particular the manager's decision to be significantly underweight the utilities sector.
It reported share price total return of 12.5%, driven by a slightly widening discount to net asset value during a period when emerging markets in aggregate were out of favour.
Revenue for the year, after taxation was GBP9.7 million.
"We expect slow improvements within the economic environment globally, so slow growth is likely to stay with us for some time, and the low cost of capital will not increase drastically overnight. However, the normalisation process is gathering momentum across all major economies. The Russian market continues to be driven by global commodity and risk trade dimensions, although the local story of dividends and earnings growth will start to play a bigger role," the company said in its full-year report.
The trust proposed a dividend of 15.30 pence a share.
Shares in JPMorgan Russian Securities were up 0.9% at 481.00 pence per share Wednesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
JRS.L