JPMorgan Global Emerging Markets Income Behind Benchmark In First Half

(Alliance News) - JPMorgan Global Emerging Markets Income Trust PLC on Tuesday reported a slip in ...

Alliance News 7 April, 2020 | 6:33PM
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(Alliance News) - JPMorgan Global Emerging Markets Income Trust PLC on Tuesday reported a slip in assets over the first half, underperforming its benchmark.

At January 31, the trust's net asset value per share stood at 134.8 pence, down from 145.0p at July 31.

JPMorgan Global Emerging Income's net assets slipped to GBP400.6 million in the six-month period from its opening position of GBP431.0 million.

The trust declared two interim dividend of 1.0p in the period, unchanged on the year before. The trust said it will monitor its dividend payment going forward, accounting for the uncertainty caused by Covid-19.

During the first half, JPMorgan Global Emerging Income's NAV total return was negative 4.9%, underperforming its benchmark - the MSCI Emerging Markets Index - which lost 4.0% in the same period.

"The principal reason for the company's marginal underperformance against the benchmark was due to being geared in declining markets," Chair Sarah Fromson said.

The trust's investment managers, Omar Negyal, Jeffrey Roskell and Amit Mehta, added: "The company's negative performance relative to the benchmark was caused by a mixture of stocks that we do own and others that we do not. E-commerce retailing giant Alibaba performed well over the period and its absence from our portfolio held back the company's relative performance this time around. This is a stock that we do not own because it offers no dividend yield so does not fit our income-driven investment criteria. Nevertheless, its size means that Alibaba's share price return over any given period has a significant negative or positive impact on the company's relative performance."

Looking ahead, the managers continued: "Whilst mindful of the challenges associated with the current virus issues, we avoid making portfolio decisions on a short-term, tactical basis: we remain focused on our long-term aim of investing in sound businesses, selecting stocks on their fundamental qualities - returns on capital, free cash flow and dividend policies. We believe this puts us in a good position to navigate through the current turbulence. We remain confident in the potential of the company's portfolio to deliver long-term capital and dividend returns."

Shares in JPmorgan Global Emerging Markets Income closed 4.6% higher in London on Tuesday at 101.50 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
JPMorgan Global Emerg Mkts Inc Ord 104.50 GBX -0.95

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