15th Jun 2020 16:28
(Alliance News) - JPMorgan Russian Securities PLC said it marginally underperformed its benchmark for the first half of financial 2020 amid the Covid-19 pandemic and the decline in oil prices.
Shares in the Russia-focused investor were trading 2.3% lower at 590.00 pence each on Monday afternoon in London.
JPMorgan Russian Securities said that for the six-month period to the end of April, its net asset value per share was 624.2p, down 6.8% year-on-year from 670.1p. Total return was negative 19%, lower than its benchmark the RTS Index which returned negative 18%.
The performance was attributed to the disagreement between Russia and other OPEC countries which led to a steep decline in oil prices, as well as the Covid-19 pandemic which resulted in a crash in global equity markets.
JPMorgand said its interim dividend will be considered for declaration in September and is expected to represent most of the dividend for the year. It will be followed by a "significantly smaller final dividend".
Looking ahead, Chair Gill Nott said: "A global recession in 2020 seems a certainty, although the Russian Central Bank along with its counterparts in the USA, Europe and other leading economies have introduced unprecedented levels of fiscal support to help mitigate this. What is presently unclear is how long and deep a recession could be, or how successful the measures to bring Covid-19 under control will be."
"Whilst many companies are at present experiencing a severe downturn in earnings, particularly those in the energy sector, it is expected that oil prices will recover somewhat toward the end of the year Some other sectors such as the materials and technology sectors are faring much better and are expected to continue to do well. By holding a portfolio of fundamentally strong companies, the board is confident that the company is well placed to benefit when the world economy begins to pick up, and financial markets, including those in Russia, stabilise and recover."
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
JRS.L