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(Alliance News) - JPMorgan American Investment Trust PLC on Tuesday said it expects earnings for its portfolio of US companies to exceed pre-pandemic levels in 2021, as economic activity and "spending power" in the US recovers.
The London-listed fund managed by JP Morgan Asset Management invests in S&P 500 index companies, namely "quality companies that are reasonably priced".
Net asset value per share was 698.1 pence on June 30, up from 610.1p on December 31. NAV per share was 515.7p on June 30, 2020.
NAV total return was 15.4% over the six-month period, outperforming the S&P 500 benchmark of 13.9%.
The company attributed its outperformance to sector allocation and gearing when investing. "The level of gearing was continuously monitored and maintained at fairly modest levels to keep it within the guidelines laid down by the board," it said.
Income from investments was GBP7.6 million, down 15% from GBP8.9 million in the same period last year. Pretax net return multiplied, rising to GBP181.9 million from GBP29.9 million.
JPMorgan American Investment Trust withdrew its investments in electric car maker Tesla Inc and pumped the proceeds into social network Facebook Inc, citing a better risk/reward profile as motivation for the transfer.
The company declared an interim dividend of 2.5 pence per share, unchanged from 2020.
"It seems likely that there will be further periods of alternating relative strength between growth and value stocks," said Chair Kevin Carter.
"Fortunately the company's investment policy has explicit exposure to both of these investing styles and the managers will be able to continue their focus of bottom up stock picking in this environment without undue concern about these style rotations."
It said it expects to see about 19% earnings growth from its portfolio companies over the next 12 months.
Shares in JPMorgan American Investment Trust were up 0.9% at 694.00p in London on Tuesday.
By Josie O'Brien; josieobrien@alliancenews.com
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