LONDON (Alliance News) - JPMorgan Brazil Investment Trust PLC Friday said it underperformed its benchmark in the year to April 30 and will once again reduce its dividend.
The trust said that over the period its total return on net assets was negative 24.4% compared with the MSCI Brazil 10/40 Index which was negative 17.1%.
JPMorgan Brazil said the Brazilian market was hit hard by a negative investor sentiment towards emerging markets, falling further than the broader set of emerging markets as local concerns about earnings growth and about government intervention in the economy saw valuations fall.
"The fall in the equity market was exacerbated by the weakness of the currency, with the Brazilian real weakening against sterling by some 21% over the year," the trust said.
In light of its woes, the company reduced its dividend to 0.85 pence, compared with 1.00 pence a year earlier. For the year to April 30, 2012, the company declared a dividend of 1.35 pence.
JPMorgan Brazil shares closed up 0.5% at 73.50 pence Friday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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